TrueHireCost

True Cost of Hiring Calculator

The True Cost of a New Hire Calculator

Estimate the fully loaded cost of an employee — salary, employer taxes, workers’ comp, benefits, and overhead — for any U.S. state and industry.

Open the Calculator

True Cost of Hiring Calculator

Pre-configured with your state tax rates. Adjust salary, benefits, and overhead to model your specific hire.

Your Inputs

Annual Base Salary$80,000
Stateyour state
Industry / Workers’ Comp ClassOffice / Clerical
Monthly Benefits$650
401(k) Employer Match4%
SUTA Rate2.7%
Workers’ Comp (per $100)$0.80
Annual Overhead$3,000

Total Annual Cost

$101,207

Loaded multiplier: 1.27× base salary

Cost ComponentAnnual
Base Salary$80,000
Employer Taxes (FICA, FUTA, SUTA)$6,567
Workers’ Comp$640
Benefits + 401(k) Match$11,000
Overhead$3,000

Open the interactive calculator to adjust every input and export a PDF report.

The True Cost of Hiring an Employee in 2026

A $80,000 salary rarely costs $80,000. Once you layer in employer payroll taxes, benefits, equipment, and overhead, the fully loaded cost of a W-2 hire typically lands between 1.25× and 1.45× base pay. This calculator breaks down every component so you can forecast the real cash impact of your next offer.

Employer Payroll Taxes: FICA, FUTA, and SUTA

Every W-2 hire triggers federal and state payroll taxes. FICA combines Social Security (6.2% up to the 2026 wage base of $184,500) and Medicare (1.45% with no cap). FUTA is 6.0% on the first $7,000, but most employers get a 5.4% state credit, yielding 0.6% effective. SUTA varies by state and experience rating — from under 1% to over 4%.

Benefits and Overhead

Health insurance commonly runs $500–$900/month per employee. A 401(k) match of 3–5% adds directly to loaded cost. Overhead — software, hardware, office space, management time — adds $2,000–$5,000/year. Workers’ comp, priced per $100 of payroll, varies by state and industry.

Browse Hiring Costs by State or Industry

Popular States

All 51 states →

Industries

All 20 industries →

Editorial Standards

Maintained by the TrueHireCost editorial team

TrueHireCost is an independent research and tooling project. Our content is written and maintained by the TrueHireCost editorial team — not by a licensed CPA, attorney, or HR certificant, and no named professional endorses or "verifies" these pages. Rates, wage bases, and benchmarks are collected from official public sources (IRS, U.S. Department of Labor, state workforce agencies, and the Bureau of Labor Statistics) and labeled with their source and last-reviewed date. State SUTA, workers’ comp, and minimum-wage figures are representative new-employer estimates and should be confirmed with the agency for your specific situation.

Found an outdated rate or a calculation that looks wrong? Email editorial@truehirecost.com and we’ll review and correct it. TrueHireCost is an informational tool, not professional tax, legal, or HR advice — consult a qualified professional before making hiring or payroll decisions.

Last updated 2026-08-24

Data Sources & Methodology

Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.

IRS

FICA, FUTA tax rate & wage base

U.S. DOL

FUTA credit, federal wage & hour

State Workforce Agencies

SUTA rates, wage bases, new-employer rates

BLS

Industry salary benchmarks & turnover

Frequently Asked Questions

What is the true cost of hiring an employee?

The true cost of a new hire is the fully loaded cost: base salary plus employer payroll taxes (FICA, FUTA, SUTA), workers’ compensation, benefits, and overhead. For an $80,000 salary, the loaded cost is typically about $105,600, or roughly 1.32× base salary.

How is the true cost of hiring calculated?

TrueHireCost adds employer FICA (7.65%), federal and state unemployment tax, workers’ comp (varies by state and industry), benefits, and overhead to the base salary. You can adjust each input for any U.S. state and industry.

What employer taxes do I pay on top of salary?

Employers pay 7.65% FICA (6.2% Social Security + 1.45% Medicare), FUTA (up to 0.6% on the first $7,000), state unemployment (SUTA), and state disability insurance where applicable.

Is the TrueHireCost calculator free?

Yes. The TrueHireCost hiring cost calculator is free to use, requires no sign-up, and works for all 50 U.S. states and 20 major industries.

For Estimation Purposes Only

TrueHireCost provides hiring cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.