Employee cost calculator
A free employee cost calculator. Start with the salary, then add your own employer tax rate, benefits and other yearly costs to see what one employee costs in total and per hour.
One employee, one year
The tax rate is yours to set. Employer taxes differ by country and state, so use the rate your accountant or tax office gives you. 8% here is only a starting example.
Result
Total cost per year
$62,000.00
1.24 times the salary
- Employer taxes
- $4,000.00
- Cost per hour worked
- $29.81
Nothing you type here is saved or sent anywhere.
What the employee cost calculator works out
The cost of an employee is more than the salary. On top of pay, an employer usually carries payroll taxes, benefits, and extras such as equipment, software and training. Adding them together gives the true yearly cost, and dividing by the hours worked gives the cost of each hour.
How it is calculated
Work out employer taxes
Employer taxes = salary x your tax rate.
Add everything together
Total cost = salary + employer taxes + benefits + other costs. Cost per hour = total cost / hours worked per year.
Worked example
A $50,000 salary at an 8% employer tax rate is $4,000 in taxes. With $6,000 of benefits and $2,000 of other costs the total is $62,000, which is 1.24 times the salary, or $29.81 for each of 2,080 hours.
Keep pay and hours on the same record
Wrkbase stores each person's pay rate next to their attendance and logged hours, and runs monthly pay runs with payslips on the Team plan. It does not calculate employer taxes for you.
Good to know before you rely on it
What goes under other costs?
Anything you pay because this person works for you that is not salary, tax or benefits: a laptop, software seats, training, a phone allowance, recruitment fees spread over the year.
Why is 2,080 the default for hours?
40 hours a week for 52 weeks is 2,080 hours. Lower it to count only hours actually worked, after holidays and leave, for a truer hourly cost.
What employer tax rate should I use?
The one that applies to you. Rates differ by country, state and sometimes by employee, so this employee cost calculator leaves it for you to enter rather than assume one.
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