True cost of an employee calculator
The salary is never the cost. Payroll taxes, unemployment insurance, workers' comp, benefits, paid time off, and overhead typically add 25–30% on top — this calculator shows the line-by-line truth for any salary.
| Gross salary | $45,000 |
| Payroll taxes (FICA — Social Security + Medicare) | +$3,443 |
| Unemployment insurance (FUTA + SUTA) | +$900 |
| Workers' comp insurance | +$675 |
| Health insurance + benefits (typical SMB share) | +$4,050 |
| Paid time off + holidays (~15 paid days) | +$2,700 |
| Office space, equipment, software seats | +$2,250 |
| True annual cost | $59,018 |
That's $4,918/mo — 31% above sticker price. A vetted remote hire in the same seat typically runs $900–$1,600/mo all-in.
See the remote optionEstimates use standard 2026 rates: 7.65% FICA, ~2% FUTA/SUTA, ~1.5% workers' comp, typical SMB benefits share, 15 paid days off, and modest office/software overhead. Your state and plan will vary.
Common questions
Where do these percentages come from?
Standard 2026 rates: 7.65% employer FICA (Social Security + Medicare), ~2% federal and state unemployment insurance, ~1.5% workers' comp for office roles, typical small-business shares of health benefits, the cost of ~15 paid days off, and modest office/equipment/software overhead. Your state and benefits plan shift the exact number.
Does a remote international hire carry the same burden?
No — that's most of the savings. A full-time remote contractor is paid a flat monthly rate; there's no employer FICA, unemployment insurance, workers' comp, or benefits obligation. You add only a payment-platform fee (~$49/mo on Deel-style tools, less via Wise).
What about the cost of a bad hire?
The biggest unlisted line item — typically estimated at 30% of first-year earnings once you count wasted salary, your time, and the work that didn't get done. It's why vetting depth and a replacement guarantee are worth real money.
Shocked by your number? There's another way to fill the seat.
One free 30-minute call — we scope the role, quote the pay band, and you meet 3–4 vetted finalists in 2–3 weeks. 100-day free-replacement guarantee.
Book a free discovery call