True Cost of an Employee
Go beyond the base salary. This tool helps you understand the fully-loaded cost of your workforce, including the 25-40% typically spent on taxes and benefits.
e.g., FICA, UI (~10-15%)
What is the "true cost" of an employee?
The true cost of an employee is their total cost to the company, which includes their base salary plus mandatory taxes, insurance, benefits, equipment, and training.
How much more than the salary does an employee cost?
On average, an employee costs between 1.25 to 1.4 times their base salary. For example, a $50,000 employee often costs the company $62,500 to $70,000 annually.
What are the biggest hidden costs?
Key hidden costs include employer-paid payroll taxes (Social Security/NI), workers' compensation insurance, health insurance premiums, and 401k/pension matching.
Should I include office space?
Yes, if you want a fully-loaded cost. This calculator includes an "Overhead & Equipment" field to account for desk space, software licenses, and hardware.