True Cost of an Employee
Wages plus payroll taxes, benefits, and insurance: what a hire really costs per year.
True annual cost
$53,920
$4,493 per month
Cost multiplier
1.30×
total ÷ wages
Real cost per hour
$25.92
vs $20.00 paid
- Wages$41,600
- Social Security + Medicare$3,182
- Unemployment (FUTA + state)$366
- Workers' comp$624
- Health benefits$5,400
- Retirement contribution$1,248
- Equipment, training, other$1,500
Uses 2026 federal figures: Social Security 6.2% on wages up to $184,500, Medicare 1.45%, and FUTA 0.6% net on the first $7,000. State unemployment and workers' comp rates vary widely; check your state and carrier. Excludes paid time off, which is already inside wages.