Total cost to employ someone — wages + FICA + FUTA + state UI + workers comp + benefits. The real number, not the paycheck number.
Total employer cost / year
27.6% burden on gross
$53,101.40
Gross wages
$41,600.00
FICA (7.65%)
$3,182.40
FUTA
$42.00
State UI (2.7%)
$405.00
Workers comp (1.5%)
$624.00
Health benefit
$6,000.00
Retirement match
$1,248.00
True hourly cost
Total employer cost ÷ paid hours
$25.53/hr
Employees cost far more than their hourly rate. Typical burden is 20-35% on top of wages: payroll taxes (FICA 7.65%, FUTA 0.6%, state UI 2-5%, workers comp 1-3%), plus health benefits and retirement match if offered.
SUTA/UI tax caps the wage base (typically $7-40k depending on state) and rates vary by industry and claim history — this uses rough averages, ask your state agency for exact.
Educational estimate only — not tax or legal advice.
employer_cost = gross + FICA + FUTA + state_UI + workers_comp + benefits + retirement
Break-Even Analysis
Fixed costs, variable cost per unit, and price — see the break-even unit count and revenue.
Equipment Depreciation
Straight-line depreciation schedule by equipment type — for tax planning and product pricing.
Cost-Plus Pricing
Set a retail price from your cost and target margin — with a sanity check against competitor pricing.