Frequently Asked Questions
How do I calculate payroll costs for my small business?
Total payroll cost = gross wages + employer payroll taxes (Social Security 6.2%, Medicare 1.45%, FUTA 0.6%, SUTA varies by state) + benefits + overhead. This calculator does all of this automatically.
What employer taxes do I pay on top of salaries?
Employers pay Social Security (6.2%), Medicare (1.45%), Federal Unemployment (FUTA at 0.6% on first $7,000), and State Unemployment (SUTA, varies 1-5%). Total employer tax burden is typically 8-12% on top of gross wages.
How much more than salary does an employee cost?
A full-time employee typically costs 1.25-1.4x their base salary when you include employer taxes and basic benefits. A $50,000 salary employee costs $62,500-$70,000 total. This calculator shows your exact number.
Is this payroll calculator free?
Yes, completely free. No account needed. All calculations happen instantly in your browser.
How it works
Manage your company's full roster. Add salaried or hourly employees with customized state unemployment taxes and health benefit rates. The interactive calculator aggregates your true monthly/annual gross wages, employer taxes, benefits, and multipliers in real-time.
Tips for best results
- •FICA employer payroll taxes consist of 6.2% Social Security and 1.45% Medicare on top of all gross wages paid.
- •Unemployment taxes (FUTA and SUTA) represent critical employer liabilities. FUTA is generally capped at the first $7,000 of wages.
- •A W-2 employee's real cash cost is usually 25% to 40% higher than their base gross pay due to mandatory taxes, benefit packages, and software overhead.