Employee Cost Calculator 2026
Salary is only part of what an employee costs.
See your true total cost including taxes, benefits, PTO, and overhead.
US average: ~$7,200/yr employee-only, ~$20,576/yr family
Common: 3–6% of salary. $65K × 3% = $1,950
Paid vacation + sick days
Clerical ~0.3%, skilled trades 2–8%, construction 10%+
The True Cost of an Employee — What Most Business Owners Miss
A $65,000 salary offer costs you significantly more than $65,000. Before making your first hire, understand the full picture:
Mandatory Employer Taxes (2026)
- Social Security (6.2%): Employer matches the employee's 6.2% on wages up to $176,100 — max $10,918.
- Medicare (1.45%): No wage cap on the employer side. No additional Medicare surcharge for employers.
- FUTA (0.6% net): Federal unemployment on the first $7,000 of wages. Most employers pay the net 0.6% after the state credit — just $42/employee/year.
- SUTA: State unemployment tax varies significantly by state and your experience rating. New employer rates typically run 1–4%. An experienced employer with low turnover can drop to near 0.1%.
The PTO Cost People Forget
10 days of PTO for a $65,000/year employee is $65,000 ÷ 260 working days × 10 = $2,500 in paid non-productive time. Add 8–10 US federal holidays and it approaches $4,500 — before you've spent a dollar on benefits.
The Burden Rate Rule of Thumb
For US small businesses, expect employer burden rates of 20–30% above salary for a basic benefits package. Enterprise employers with rich benefits and significant overhead can see 40–50%.
Related: Employer Payroll Tax Calculator · 1099 vs W-2 Calculator · Payroll Cost Calculator
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