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 $6,317 on top of salary breaks down
- Social Security74%
- Medicare17%
- FUTA2%
- State SUI4%
- ETT0%
- Workers' comp3%
| Base wages | Annual rate basis | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA (incl. projected credit reduction)est. | 2.10% on first $7,000 | $147 |
| 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 annual cost | $81,317 |
$75,000 annualized wages · 2,080 paid hours · California · 1 in role · 1 total employer headcount · tax year 2026.
Health $0/year · retirement 0% · other benefits 0% · payroll/PEO fees $0/year.
Employer-paid costs only — employee withholdings (state income tax, SDI, employee-funded leave) are excluded; these are costs on top of wages, not deductions. Estimate for budgeting, not tax advice. Defaults use the new-employer SUI rate and an office-class workers'-comp 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 $6,317 — about 8.4% — bringing the fully-burdened cost to $81,317, or $39.09/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. Additional Medicare Tax 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 actual figure depends on the state's unemployment rate and wage base.
Why does the cost of an employee 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 sourced. Your actual SUI experience rate and workers' comp premium are employer-specific — confirm with your state agency or carrier.
Every figure is sourced and explained in our methodology.