👥 Employee Cost Calculator

How to use the Employee Cost Calculator

1. Base salary: The annual salary before any employer-side costs.
2. Benefits (%): Include health insurance, dental, vision, life insurance, 401k match, and the monetary value of PTO. In the US, this typically runs 20–30% of salary.
3. Payroll taxes (%): Employer-side FICA (7.65%), plus FUTA and state unemployment taxes. Use 15% as a safe default in the US.
4. Equipment & overhead: Amortized cost of hardware, software, training, and any office space allocation per employee.

The cost multiplier shows how much more than base salary you actually pay. A multiplier of 1.4x means a $75k salary costs you $105k. This is critical for hiring decisions, contractor vs. employee comparisons, and pricing client work.