Cost of an employee calculator

Start with annual wages, then add the employer-paid benefits and other costs you actually expect. The tax lines use sourced 2026 federal rules.

What “fully loaded employee cost” means here

The result adds wages, federal employer payroll taxes, your health contribution, your retirement contribution and the other annual costs you enter. It divides the same annual total by 12, by the selected number of pay periods and by productive hours. It does not apply a generic “benefits multiplier.”

Use actual employer-specific costs

SUTA, workers' compensation, insurance and payroll fees can differ sharply between two employers paying the same wage. Put known annual amounts in “Other employer costs.” If you do not know them yet, the result is a documented federal baseline rather than a complete budget.

Need only the federal tax breakdown? Use the employer payroll tax calculator. For filing context, read the employer payroll taxes guide.

Sources

• IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits, FUTA coverage and employer filing responsibilities
• IRS — FUTA credit reduction — 6.0% statutory FUTA rate, first $7,000 of wages, usual 5.4% credit and credit-reduction-state timing
• IRS — Social Security and Medicare withholding rates — 6.2% employer Social Security and 1.45% employer Medicare; no employer match for Additional Medicare Tax