Small Business Finance Tools

The True Cost of an Employee

Salary is just the beginning. Calculate the real all-in cost of hiring — including taxes, benefits, and overhead — before you make the offer.

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Compensation
Base Pay
$
Benefits
Health Insurance
$ /mo
Average employer contribution is $500–$700/mo for single coverage
401(k) Match
%
Matched on employee contributions up to this % of salary
Paid Time Off
days
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Taxes & Overhead
Employer Payroll Taxes
%
Fixed at 6.2% on first $168,600 of wages (2024)
%
Fixed at 1.45% on all wages
$/yr
Typically $420/year (6% on first $7,000)
$ /yr
Varies by state; $200–$600 is typical for new employers
Overhead & Other
% of salary
Varies widely by industry; office workers ~1%, trades ~5–10%
$ /yr
Laptop, software licenses, tools, phone allowance
$ /yr
Per-employee office cost or remote work stipend
$ one-time
Job ads, interviews, background checks, training time
True Annual Cost of This Employee
$0
That's 0% more than the base salary
Cost Breakdown by Category
Ready to hire? Compare payroll software. The right payroll tool saves hours every month and keeps you compliant.
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