True Employee Cost Calculator
Calculate the true cost of an employee including benefits, taxes, and overhead.
Typically 1.25x to 1.4x the base salary.
Total Employee Cost
True employee cost is significantly higher than the base salary. The total cost multiplier is typically 1.25x to 1.4x the gross salary.
Breakdown of typical additional costs:
| Category | % of Salary |
|---|---|
| Payroll taxes (Social Security, Medicare, unemployment) | 7.65–10% |
| Health insurance | 5–12% |
| Retirement contributions (401k match) | 3–6% |
| Paid time off (vacation, sick, holidays) | 5–8% |
| Workers’ compensation | 1–3% |
| Office/equipment overhead | 2–5% |
Total additional cost: 25–40% on top of base salary.
Formula:
Total Cost = Salary × Multiplier
Where the multiplier ranges from 1.25 (minimal benefits) to 1.40 (comprehensive benefits package).
Example: A $70,000 salary with a 1.35x multiplier costs the company $94,500/year.