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What a Hire Actually Costs

Nobody costs what their salary says. Before you make an offer, this adds the employer side of payroll taxes, unemployment insurance, workers comp, benefits and the match, so you know the number that actually hits your P&L.

$
$/mo
%
%
$
$
$
All-in annual cost
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Above base salary
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Per month
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Fully loaded hourly
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at 2,080 hours
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Where it goes
Per year
Base salary
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Social Security (6.2% to $184,500)
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Medicare (1.45%, no cap)
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Federal unemployment (0.6% of first $7,000)
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State unemployment
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Workers compensation
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Health insurance
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401(k) match
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Equipment, software, other
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All-in cost
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Thinking about a first hire? The cash timing matters as much as the cost.
Business guides

Uses 2026 federal figures: Social Security at 6.2% on wages to $184,500, Medicare at 1.45% with no cap, and federal unemployment at an effective 0.6% on the first $7,000 of wages after the standard 5.4% state credit. State unemployment rates and wage bases vary widely and are set per employer, so use your own assigned rate. Employers in a credit-reduction state pay more federal unemployment than 0.6%. Workers compensation rates vary by state and job classification. This does not include paid leave costs, payroll processing fees, recruiting, or state-specific mandates such as paid family leave. Estimates only, not tax advice.