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TAXES AND BOOKKEEPING

Employee cost calculator
For every business, the cost of an employee eclipses the sum of their wages. But how do you figure out exactly how much a new or existing employee costs?
A payroll cost calculator, often called a workers calculator, employment cost calculator, or labor cost calculator, can help to determine an employee’s gross wages in addition to other employee-related expenses. These include payroll taxes, which cover local, state, and federal taxes, which include Social Security, Medicare, and unemployment. The true cost of an employee also includes the cost of benefits, such as health insurance and paid time off, along with other ancillary expenses such as meals or supplies. Overhead expenses , such as required technology or office space, also figure into the calculation.
Determining the amount of taxes, benefits, overhead expenses associated with hiring an employee helps you set your prices high enough to cover these costs. It can also help you with business planning, so you can determine when it's the right time to hire a new employee.
The true cost of an employee calculator can help you estimate how much an employee will cost your small business, taking into consideration the different payroll taxes in each of the 50 states. Determine how much your new employee would cost, beyond their standard wages. Simply plug in the requested information into the fields below to determine how much an employee will cost your business.
1
Pay information
Pay type
HourlySalary
Employee’s hourly rate
Hours worked per week
2
Tax information
Taxes vary by state. Tell us where you do business so we can accurately calculate your costs.
State
This calculation assumes that both the employee and the employer are within the same state. New employer rates for unemployment insurance tax not included.
3
Benefits information
Are you contributing to your employee’s retirement plan?
YesNo
How much will you contribute to your employee’s retirement this year?
The estimated employee cost does not take into account brokerage or record keeping fees.
The estimated employee cost does not take into account brokerage or recordkeeping fees.
YesNo
Employer contribution, per year:
Health
Dental
Vision
In 2023, the average annual premiums for employer-sponsored health insurance are $8,435 for single coverage and $23,968 for family coverage, according to KFF polling .
Any additional expenses to include? Leave blank if not.
These could include paid time off, vacation days, sick days, parental leave, a health savings account, bonuses, profit-sharing, a new laptop, a desk, clothing with the business logo, gifts, etc.
Expense name
Annual contribution
close-icon
All done!
Estimated annual employee cost*
$0.00
Estimated annual employee cost*
$0.00
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