Salary is just the starting point. See the true, fully-loaded cost of an employee once taxes, benefits, and overhead are added in.
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A salary figure is only part of what an employer actually pays. Once you add employer-side payroll taxes, health benefits, retirement contributions, equipment, office overhead, and recruiting costs, the real number is typically 1.25 to 1.5 times the base salary — sometimes more.
In the US, employers match the employee's FICA contribution: 6.2% for Social Security (up to the annual wage base) and 1.45% for Medicare, plus federal and state unemployment insurance. Combined, this typically lands around 7–9% of salary, though it varies by state and industry.
Burden rate (total cost divided by base salary) helps with budgeting, pricing services, and deciding between hiring an employee versus a contractor. A contractor's invoice rate already includes their own taxes and benefits, so comparing it to a fully-loaded employee cost — not just base salary — gives a fairer comparison.
It depends. Contractors avoid employer payroll taxes, benefits, and equipment costs, but typically charge higher rates to cover their own overhead. Compare a contractor's quoted rate against this calculator's fully-loaded employee cost, not against base salary alone, for an accurate comparison.
Overhead (office space, utilities, IT support, management time) commonly ranges from 8–15% of salary for in-office roles, and can be lower for fully remote teams without dedicated office space.
No — recruiting cost is typically a one-time expense in the hiring year. This calculator separates Year 1 cost (including recruiting) from ongoing annual cost so you can budget for both.