Employee Cost Calculator
TrueHireCost analysis: the difference between ongoing employee cost (recurring annual) and hiring cost (one-time to recruit, hire, and onboard). Worked example, comparison table, and when to use each.
Open the CalculatorEmployee cost is the recurring annual cost to employ someone. Hiring cost is the one-time cost to recruit, hire, and onboard a new person.
| Employee cost | Hiring cost | |
|---|---|---|
| Frequency | Recurring annual | One-time |
| What it includes | Salary, taxes, benefits, overhead | Recruiting, vacancy, onboarding, ramp-up |
| Typical size | $101,207/yr (1.25–1.45× salary) | $4,000–$20,000 (one-time) |
| Year-one spend | Employee cost + hiring cost | |
Use employee cost for ongoing headcount budgeting and pricing. Use hiring cost for the one-time cost of filling a requisition.
Year-one spend combines both: the one-time hiring cost plus the first year of recurring employee cost. After year one, only the recurring employee cost remains.
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.