Employee Cost Calculator
The complete methodology behind TrueHireCost: every modeling assumption, default value, formula, and source — classified as statutory, published benchmark, representative estimate, or internal assumption.
Open the CalculatorEvery figure in TrueHireCost is classified into one of four categories so you always know how much weight to put on it: official statutory figures set by law, published benchmarks from BLS and SHRM, representative estimates that vary by employer and carrier, and TrueHireCost modeling assumptions that are editable defaults. Each benchmark table on a state, industry, or state×industry page labels every row with its category and source.
Employer FICA is 7.65% — 6.2% Social Security on wages up to the 2026 wage base of $184,500, plus 1.45% Medicare with no cap. FUTA is 6.0% on the first $7,000 with a 5.4% state credit, yielding 0.6% effective (max $42 per employee). The federal minimum wage is $7.25/hour. These federal statutory values are sourced from official agencies such as the IRS and U.S. Department of Labor; confirm current rates with the relevant agency before relying on them.
Each state’s new-employer SUTA rate, SUTA wage base, representative office/clerical workers’ comp rate, minimum wage, and state income tax brackets are collected from the state workforce agency and the IRS. SUTA is experience-rated, so established employers pay different rates. State SDI (California, New Jersey, New York) is an employee withholding the employer remits, not an employer tax, and is excluded from employer totals.
Default monthly benefits ($650), 401(k) match (4%), and annual overhead ($3,000, bundling equipment and software) are editable TrueHireCost modeling assumptions drawn from BLS Employer Costs for Employee Compensation. Health insurance is the largest benefit line. Every default can be changed to match your actual plan and allocation.
Fully loaded annual cost = base salary + employer FICA + FUTA + SUTA + workers’ comp + benefits + 401(k) match + overhead + bonus. Social Security is capped at the wage base; FUTA is capped at $7,000; SUTA is capped at the state wage base. The loaded multiplier = fully loaded cost ÷ salary, typically 1.25× to 1.45× for office roles.
Primary sources: IRS Publication 15, the Social Security Administration, the U.S. Department of Labor, the Bureau of Labor Statistics (OES, JOLTS, ECEC), SHRM Human Capital Benchmarking, LinkedIn Talent Solutions, Glassdoor, and each state’s workforce agency. Rates are reviewed against the issuing agency before publication; last updated 2026-08-24. TrueHireCost is an informational tool, not professional tax, legal, or HR advice.
Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.
IRS
FICA, FUTA tax rate & wage base
U.S. DOL
FUTA credit, federal wage & hour
State Workforce Agencies
SUTA rates, wage bases, new-employer rates
BLS
Industry salary benchmarks & turnover
The fully loaded cost of an employee is the total annual cost to employ them: base salary plus employer payroll taxes (FICA, FUTA, SUTA), workers’ compensation, benefits, and overhead. Using TrueHireCost’s current default assumptions, an $80,000 employee has an estimated annual employer cost of approximately $101,207. Actual costs vary by state, benefits, workers’ compensation, retirement contributions, and overhead. Under those defaults the loaded multiplier is about 1.27× base salary ($101,207).
TrueHireCost adds employer FICA (7.65%), federal and state unemployment tax, workers’ comp (varies by state and industry), benefits, and overhead to the base salary. You can adjust each input for any U.S. state and industry.
Employers pay 7.65% FICA (6.2% Social Security + 1.45% Medicare), FUTA (up to 0.6% on the first $7,000), state unemployment (SUTA), and state disability insurance where applicable.
Yes. The TrueHireCost employee cost calculator is free to use, requires no sign-up, and works for all 50 U.S. states and 20 major industries.
For Estimation Purposes Only
TrueHireCost provides cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.