Employer cost calculator · 2026
The true cost of an employee
An employee costs more than their salary. Enter a wage and a state to see the fully-burdened cost — Social Security, Medicare, federal and state unemployment, and more — itemized line by line. Free, no signup, runs in your browser.
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How the $6,296 on top of salary breaks down
- Social Security74%
- Medicare17%
- FUTA2%
- State SUI4%
- ETT0%
- Workers' comp3%
| Base salary | — | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA (incl. credit reduction) | 1.80% on first $7,000 | $126 |
| State unemployment (SUI/CA) | 3.40% up to $7,000 | $238 |
| Employment Training Tax (ETT) | 0.10% up to $7,000 | $7 |
| Workers' compensation (est.)est. | ~0.25% (office/clerical est.) | $188 |
| Total cost | $81,296 |
Estimate for budgeting, not tax advice. SUI uses the new-employer rate; workers' comp is an adjustable office-class estimate. See methodology.
What goes into the cost of an employee
On top of gross salary, every US employer owes a stack of mandatory payroll taxes and insurance. For a $75,000 salary in California, those add $6,296 — about 8.4% — bringing the fully-burdened cost to $81,296, or $39.08/hour. The main components:
- Social Security (employer): 6.20% of wages up to $184,500 (2026 wage base).
- Medicare (employer): 1.45% of all wages, no cap. (The extra 0.9% Additional Medicare is employee-only — employers don't match it.)
- FUTA (federal unemployment): 0.60% on the first $7,000 — a maximum of $42 per employee in most states. A few states add a FUTA credit reduction.
- State unemployment (SUI/SUTA): the big variable. Rates and wage bases differ sharply by state — from a $7,000 base in several states to $78,200 in Washington.
- State-specific add-ons & workers' comp: e.g. California's ETT, Washington's PFML employer share, plus workers' compensation insurance.
We deliberately exclude employee-side withholdings (California SDI, WA Cares, New York PFL) — those are deducted from the worker's pay, not paid by the employer. See the full model and exclusions in our methodology.
Common questions
How much does an employee really cost beyond salary?
For most US office roles, mandatory employer taxes add roughly 9–13% on top of salary, before any benefits or workers' comp. With benefits, total burden often reaches 25–40%. The exact figure depends on the state's unemployment rate and wage base.
Why does the cost differ by state?
Federal taxes (Social Security, Medicare, FUTA) are the same everywhere, but state unemployment (SUI) rates and taxable wage bases vary widely, and some states add their own employer levies. That state layer is what this calculator models in detail.
Is this tax advice?
No. These are budgeting estimates built from published 2026 rates (every figure is sourced). Your actual SUI experience rate and workers' comp premium are employer-specific — confirm with your state agency or carrier.