Payroll Cost Calculator
Calculate the true cost of payroll: base salaries + FICA + FUTA + state SUI + benefits. Built for US SMB owners benchmarking total labor cost.
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Stop calculating manually. MyCo automates payroll, attendance, overtime, multi-state tax filing, and 1099/W-2 generation across all 50 states.
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Enter number of employees
Total full-time-equivalent W-2 employees.
Enter average annual salary
Average across your workforce. Use base wages only.
Set benefits percentage
Health, dental, 401(k) match, life insurance, PTO accrual. US SMBs typically add 15–30% on top of base pay.
Select primary state
For state SUI calculation. TX/FL have no state income tax but still have SUI.
Review total cost
Total true payroll cost = base + FICA + FUTA + SUI + benefits.
Frequently Asked Questions
What is the true cost of an employee?
True employer cost is typically 1.25–1.40× base salary in the US. This includes FICA (7.65%), FUTA (0.6%), state SUI (varies 1–6%), workers comp (varies), and benefits (health, retirement, PTO).
What is FICA?
FICA is the combined Social Security (6.2%) + Medicare (1.45%) tax. Employers match employee FICA contributions, paying 7.65% on each employee's wages.
What is FUTA?
Federal Unemployment Tax Act. Employers pay 6% on the first $7,000 of each employee's wages, but typically receive a 5.4% credit (effective rate: 0.6%).
What is state SUI?
State Unemployment Insurance. Rates and wage bases vary by state and your claims history. Typical: $7,000–$15,000 wage base × 1–6% rate per employee.
How can I reduce payroll costs?
Common levers: switch from W-2 to 1099 where legally appropriate (high risk if misclassified), reduce overtime via better scheduling, negotiate group health rates, automate payroll processing to reduce admin time. MyCo can show you the breakdown.