Employee cost calculator

How they are paid

Hourly rate

Hours per week

Weeks per year

Estimated cost to employ, per year

$44,824

$3,224 on top of $41,600 in pay, which is 7.8% more · $21.55 for each hour worked, against $20.00 paid

Pay: $41,600
Social Security: $2,579
Medicare: $603
Federal unemployment: $42
On top of pay: $3,224

An estimate of the federal payroll taxes an employer pays, at the rates in the fields beside it. Those start as the figures we checked against the IRS on 2026-10-10. Rates change, so each field links to the page that publishes it: check it, and change the field if it differs. State unemployment tax, benefits and every other cost are your own entries, and each one counts as zero until you fill it in, so the real cost is higher than this if you have left any out. State and local payroll taxes are not included. Not tax or legal advice.

Federal rates

Employer Social Security rate

The employer’s rate on IRS Topic 751.

Social Security wage base

Pay above this is not taxed for Social Security. Published by the SSA each year.

Employer Medicare rate

The employer’s rate on IRS Topic 751.

Federal unemployment tax rate

The rate after the credit for state tax paid, on IRS Topic 759. Higher in a credit-reduction state.

Federal unemployment wage base

The pay per employee that rate applies to, on IRS Topic 759.

Costs only you know

State unemployment tax rate

Set by your state and your claims record. Your state's notice shows it.

State unemployment wage base

The pay per employee that rate applies to. It differs by state.

Benefits per year

Your share of health insurance and anything else you pay for them.

Retirement contribution

What you put in, as a share of pay.

Other costs per year

Workers' compensation insurance, equipment, software.