Payroll Cost Calculator — What an Employee Really Costs in 2026

How to use

1. Enter base pay — hourly (with expected yearly hours) or salary.
2. Set the employer-side rates: FICA match is automatic, edit SUTA %/wage base and workers-comp % for your state.
3. Add monthly benefits and an overhead % for equipment, software and workspace.
4. Read the dashboard: total cost, % above base, true hourly cost — then sanity-check a hire against the revenue they need to cover.

General information only — not medical, financial or legal advice. Figures cross-checked against public official sources (IRS / HMRC / NHS / WHO guidance); content last reviewed September 2026. For decisions that matter, confirm with a licensed professional in your country.

About this tool

Hiring math is bigger than the salary line. On top of every wage dollar, a US employer pays a matching 7.65% FICA (6.2% Social Security up to the $184,500 2026 wage base + 1.45% Medicare on everything), FUTA federal unemployment (6.0% on the first $7,000, typically $42 net per employee after the 5.4% credit), state unemployment (SUTA — rate and wage base vary by state and history, editable below), workers-compensation insurance, and then the benefits and overhead that never appear on the paycheck: health cover, retirement match, equipment, software. This calculator stacks every layer and shows the number that actually matters for your pricing and headcount decisions: total annual cost, cost as a % above base pay, and the true hourly cost. All figures are estimates for planning — your payroll provider computes the legal amounts. Popular payroll services (Gusto, QuickBooks Payroll, ADP and others) automate these filings; compare at least three before choosing one.

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