TrueHireCost

Employee Cost Calculator

True Cost of Employing an Employee: Beyond Base Salary

True cost of employing an employee guide with cost breakdown, worked examples, and industry benchmarks. Learn what an employee really costs.

Open the Calculator

Employee Cost Calculator

Pre-configured with your state tax rates. Adjust salary, benefits, and overhead to model your specific hire.

Your Inputs

Annual Base Salary$80,000
Stateyour state
Industry / Workers’ Comp ClassOffice / Clerical
Monthly Benefits$650
401(k) Employer Match4%
SUTA Rate2.7%
SUTA Wage Base$15,000
Workers’ Comp (per $100)$0.80
Annual Overhead$3,000

Total Annual Cost

$101,207

Loaded multiplier: 1.27× base salary

Cost ComponentAnnual
Base Salary$80,000
Employer Taxes (FICA, FUTA, SUTA)$6,567
Workers’ Comp$640
Benefits + 401(k) Match$11,000
Overhead$3,000

Open the interactive calculator to adjust every input and export a PDF report.

Beyond base salary: every employment cost layer

Salary is the starting line, not the finish line. Employers pay taxes, insurance, benefits, retirement, and overhead on top of wages.

The fully loaded cost of an employee is salary plus employer payroll taxes (FICA, FUTA, SUTA), workers’ compensation, benefits, a retirement match, and overhead. For a typical office role the total runs 25–45% above salary — which is why budgeting on salary alone routinely understates the real cash impact of a hire.

Worked example: what an $80,000 employee really costs

A representative $80,000 office employee with standard benefits and overhead.

Base salary$80,000
Employer FICA (Social Security + Medicare)$6,120
FUTA (federal unemployment)$42
SUTA (state unemployment)$405
Workers' compensation insurance$640
Health, dental, vision benefits$7,800
401(k) employer match$3,200
Overhead (equipment, software, office)$3,000
Fully loaded annual cost$101,207
Fully loaded annual cost (multiplier)1.27×

The components employers most often underestimate

The biggest hidden costs are the ones that never appear on an offer letter.

  • Employer FICA (7.65%). Paid on top of wages, not withheld from them — the largest single tax add-on.
  • Workers’ comp. Mandatory insurance priced per $100 of payroll; varies sharply by industry.
  • Benefits. Health insurance is usually the largest non-tax line, often $6,000–$14,000/year.
  • Overhead. Equipment, software, and allocated office cost bundled into a single line.

Related resources

Data Sources & Methodology

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

Frequently Asked Questions

What is the fully loaded cost of an employee?

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).

How is the fully loaded employee cost calculated?

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.

What employer taxes do I pay on top of salary?

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.

Is the TrueHireCost calculator free?

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.