Employee Cost Calculator 2026: Payroll Taxes and Benefits
Find what an employee really costs in the US in 2026: salary plus Social Security, Medicare, FUTA, SUTA, workers' comp, health insurance and 401(k) match.
| Cost | Per year | % of salary |
|---|
2026: Social Security up to 184,500 of wages, Medicare without a limit, FUTA 0.6% after the 5.4% credit (more in credit reduction states). SUTA rates and wage bases vary by state and by the employer's history. Paid time off is already part of the salary.
What it does
An employee costs more than the salary: the employer pays its half of Social Security and Medicare, federal and state unemployment taxes, workers' compensation insurance and benefits such as health insurance and a 401(k) match. The calculator adds them up and shows the total cost per year, per month and per hour.
How to use it
- Type the yearly salary and the paid hours per year (2,080 for full time).
- Type the benefits you pay and your SUTA rate and wage base (on your state unemployment notice).
- See the total cost, the cost per hour and each part in the table.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much does an employee really cost?
A salary of 60,000 costs about 73,821 a year with 500 a month of health insurance, a 4% 401(k) match, 2.7% SUTA and 1% workers' comp: 23% more, 35.49 an hour against 28.85 of salary.
What payroll taxes does the employer pay?
6.2% Social Security up to 184,500 of wages and 1.45% Medicare in 2026, plus FUTA (usually 42 per employee a year) and the state unemployment tax. The employer does not pay the 0.9% Additional Medicare Tax.
What is the rule of thumb for employee cost?
1.25 to 1.4 times the salary once benefits are included. Payroll taxes alone add about 8% up to the Social Security limit.
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