True Cost of an Employee Calculator (2026, US)
Enter what you plan to pay. The calculator adds the employer-side taxes and costs that don't show up in the wage, using 2026 federal figures. Nothing you type leaves your browser.
Estimate only, not tax or legal advice. State unemployment rates and wage bases, local payroll taxes, and workers' comp classes vary. Confirm with your state agency, insurer, or payroll provider.
How the math works
- Social Security (employer share): 6.2% of wages up to the 2026 wage base of $184,500 (IRS).
- Medicare (employer share): 1.45% of all wages. The extra 0.9% Additional Medicare Tax is withheld from the employee only, so it isn't an employer cost.
- FUTA: 6.0% of the first $7,000 per employee, reduced to 0.6% (max $42) when you pay state unemployment on time and your state isn't a "credit reduction" state (IRS Topic 759).
- SUTA: your rate × wages up to your state's wage base. New employers get an assigned rate; it's on your state registration letter. See the state guides for 2026 new-employer rates we checked.
- Workers' comp: quoted per $100 of payroll by job class. Office work is often far cheaper than roofing.
Read the full explanation in Employer payroll taxes in 2026, or a worked example in What a part-time employee really costs.
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FAQ
What multiplier should I use for employee cost?
A common planning range is 1.25 to 1.4 times base pay once benefits are included. Without benefits, federal employer taxes alone add about 7.65% plus FUTA, before state unemployment and workers' comp.
Is FUTA really only $42 per employee?
Usually, yes: 0.6% of the first $7,000 after the full state credit. Employers in a credit reduction state, or who pay state unemployment late, pay more.