Employee cost planning
True Employee Cost Calculator
Base pay is only part of what an employee costs your business. Add employer-paid taxes, benefits, and support costs to see the full year.
Methodology
How the calculator works
Base pay is not the same as total employer cost. The calculator adds employer-paid payroll tax and workers’ compensation assumptions, bonuses, benefits, and operating support costs to annual base compensation.
Base compensation = hourly wage × paid hours × paid weeks, or annual salary
Total employee cost = base compensation + wage-based costs + bonuses + benefits + support costs
Cost multiplier = total employee cost ÷ base compensation
Additional employer cost = total employee cost − base compensation
Actual costs vary by employee, state, insurer, company policies, and business model. Revenue comparison does not calculate net profit.
This calculator provides planning and educational information—not tax, legal, accounting, insurance, HR, or financial advice.
FAQ
True employee cost questions
What is included in true employee cost?
It includes base compensation, entered payroll and workers’ compensation assumptions, bonuses, benefits, and annual support costs.
Can I calculate both hourly and salaried employees?
Yes. Hourly mode calculates annual base compensation from wage, paid hours, and paid weeks. Salary mode uses annual salary.
Is contribution before shared overhead net profit?
No. Shared company overhead, owner compensation, financing, tax, and other business costs may still remain.
Are the tax and insurance rates official?
No. They are editable planning assumptions and vary with location, classification, insurance, and business circumstances.