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 will calculate automatically and can't be changed. Hitting the return key will clear the form and reset it to the default values. 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 (hours/week)  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 SUTA & Workers Comp fields are REQUIRED
Wages after 
Pretax Deductions 
Taxable Amt
after Applying Wage Bases
 
Cost
Wage Bases
FICA
FICA
  (update annually)
FUTA  (or .062 if not eligible
 for the SUTA credit)
FUTA
  (update as needed)
SUTA  (2008 rates: 0.0192 to 0.1096)
SUTA
  (update as needed)
Other
Other
  (enter a wage base if
 using this field)
Workers' Comp  (Rate per $100 paid -
 change as needed)
Workers' Comp rates in 2008 ranged from $0.12 per $100 paid for clerical to over $15.00 per $100 paid for certain types of construction work. Common rates are $0.12 for clerical, $1.18 for most retail store workers, $2.00-5.00 for restaurant & manufacturing. Check your Workers Comp Policy or call your insurance agent to get the correct rate for this employee.
 
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
   

 

 

 

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