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• • Business Planning Resources and Links
  • Business Plans and Financing Proposals
  • Sample Business Plan Outline
  • Strategic Planning and SWOT Analysis
• Employee and Subcontractor Information
• • Help Paying for Health Insurance Through the Insurance Partnership
  • What’s the Massachusetts WorkShare Program?
  • IRS - Independent Contractor or Employee
  • MA - Unemployment Insurance Guide for Employers
• Nonprofit Information
• • Cost Allocation for Nonprofits
  • The New Form 990: What Does it Mean for Smaller Nonprofits?
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  • Tax Saving Tips for Married Gay Couples

See also Payroll Services

Employee Cost Calculator

What's an employee REALLY cost? How do you compare a subcontractor’s rate to the hourly rate you pay an employee? What does providing health insurance really add to the bottom line, considering payroll taxes and worker’s comp insurance costs are reduced with pretax deductions? You can use this calculator to find out.

Gray fields are required. Cream ones are optional. White fields calculate automatically each time you click a button. Hitting the return key may clear the form and reset it to the default values in some browsers (if you WANT to reset the form, there is a reset button near the bottom). The information you enter will not be submitted anywhere (I’ll never see it), but it may remain in your browser cache.

DISCLAIMER: Jo Landers does not guarantee the accuracy of this calculator. I hope you find it useful; however your actual employee costs may be different from those generated by this form. If you notice errors or missing data entry fields commonly relevant to Massachusetts employment, please use the link at the bottom of the page to send feedback.

WAGES
	Hours/Week		REQUIRED				For salaried employees, enter annual wages here to compute an hourly rate.
	Hourly Rate		REQUIRED
	Full Time %		where Full Time =   hrs/wk				Annual Salary:
							Hours per Week:
OPTIONAL BENEFITS
	Paid Time Off
	Paid Breaks		hrs/week			hrs/year
	Vacation		days/year			hrs/year	Annual hrs		Percent
	Sick or Personal Time		days/year			hrs/year	Total Paid Time Off:
	Paid Holidays		days/year			hrs/year	Total Working Time:
	Other		days/year			hrs/year	Total Annual Hours:
					Total Cost for Paid Time Off:
					Total Cost for Work:
					Total Annual Wages:
Health Insurance				Plan Cost
	Total Premium
	Company Contribution (in dollars)
	Insurance Partnership Subsidy (in dollars)				Annual Employee Pretax Amount:
	Employee Contribution (pretax)				Annual Company Cost:
Dental Insurance				Plan Cost
	Total Premium
	Company Contribution (in dollars)				Annual Employee Pretax Amount:
	Employee Contribution (pretax)				Annual Company Cost:
Other Insurance				Plan Cost
	Total Premium
	Company Contribution (in dollars)				Annual Employee Pretax Amount:
	Employee Contribution (NOT pretax)				Annual Company Cost:
					Total Company Cost for All Optional Insurance:
REQUIRED BENEFITS
	The FUTA, SUTA & Workers Comp fields are REQUIRED			Wages after Pretax Deductions			Taxable Amt after Applying Wage Bases
				Wage Bases					Cost
	FICA				FICA	(update as needed)
	FUTA				FUTA	(update as needed)
	SUTA				SUTA	(update as needed)
	Other		(optional)		Other	(optional wage base)
	Workers Comp
						Total Annual Company Cost for REQUIRED BENEFITS:
SUMMARY
	ANNUAL WAGES FOR WORK:
	Required Benefits
	FICA				Hourly Rate (from above):
	FUTA
	SUTA				’Fringe’ Percentage Cost:
	Other
	Workers' Comp Insurance				Real Hourly Cost for Actual Work Time  (after wages, paid time off, taxes & benefits):
	TOTAL Required Benefits:					Compare the real hourly cost of an employee to the hourly cost for a subcontractor. However, be aware there are penalties for classifying someone as a subcontractor who SHOULD be an employee, and you may still need to cover a subcontractor under your workers comp policy. See Employee vs. Subcontractor: What’s the Difference and Why You Should Care for more information.
	Optional Benefits
	Paid Time Off
	Health, Dental    & Other Insurance
	TOTAL Optional Benefits:
	REAL COST THIS EMPLOYEE: