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True Cost of an Employee

Salary is the small part. Add employer taxes, benefits, overhead, equipment, and the hours they won't actually be productive — then you've got the number.

Compensation

Employer taxes & insurance

7.65%
Fixed; calculator applies automatically.
3%
FUTA's effective 0.6% included on top. SUTA varies by state & experience rating.
2%
Office: ~0.3%. Trades: 5-15%. Roofing: 20%+.

Benefits

Overhead & setup

Productivity

70%
True annual cost
$0
— true hourly cost
Salary multiplier

What you actually pay for every $1 of base salary, fully loaded. Industry average is 1.25 to 1.4 — heavier in regulated trades.

Cost / productive hour
Cost / month

Where it comes from

Base compensation
+ Bonus
+ FICA (7.65%)
+ SUTA + FUTA
+ Workers' comp
+ Health insurance
+ Retirement match
+ Software / tools
+ Office
+ Equipment (amortized)
+ Recruiting (amortized)
True annual cost

Before hiring, see what automating instead would cover

If you're hiring because phones go unanswered, appointments get dropped, or quotes don't go out on time — Orbit (24/7 voice agent, $29/mo) covers a chunk of an entry-level role's job at less than 0.5% of the loaded cost shown above. SiteLine, AgentEdge, and DealDesk bundle this directly into the workflow that's currently breaking.