Payroll Cost Calculator
True employee cost with FICA match and benefits.
What it does
Hires cost more than gross: the employer matches FICA at 7.65% and funds benefits on top. This page adds those two lines to gross for one period so offers and budgets compare on true cost.
The default is $5,000 gross with $500 benefits. FICA is $382.50 and the true cost is $5,882.50, a 1.18 burden multiple. Cutting benefits to $200 on $4,000 gross gives $4,506.00 the same way.
FICA splits into Social Security to its wage base and Medicare without one. High earners pass the Social Security cap mid year, which this flat page does not model, while Medicare plus additional Medicare keep their own rules.
Use this for budgeting, not filing. Unemployment, workers comp class rates, state programs, and payroll provider fees all add lines this page leaves out.
How to use
- Enter gross pay for the period.
- Enter benefits dollars.
- Read total first, then FICA.
- Add comp and unemployment by hand.
- Compare offers on total, not gross.
Formula
- gross
- Gross pay for the period.
- benefits
- Employer benefits dollars same period.
Employer FICA is 6.2% Social Security to the wage base plus 1.45% Medicare with no cap, totaling 7.65% here. Unemployment insurance, workers comp by class code, and provider fees vary and sit outside this page.
Worked example
Example: $5,000 hire
$5,000 gross with $500 benefits.
- FICA: 5,000 x 7.65 / 100 = $382.50.
- Add: 5,000 + 382.50 = $5,382.50.
- Total: 5,382.50 + 500 = $5,882.50.
- Check: 5,882.50 / 5,000 = 1.1765 burden.
- Tool shows $382.50 FICA and $5,882.50 total.
Reference table
| Gross | FICA | Cost |
|---|---|---|
| $3,000 | $229.50 | $3,229.50 |
| $4,000 | $306.00 | $4,306.00 |
| $5,000 | $382.50 | $5,382.50 |
| $8,000 | $612.00 | $8,612.00 |
| $10,000 | $765.00 | $10,765.00 |
Limits
- Flat 7.65%. No wage base cap modeling.
- Benefits as one input. Details excluded.
- No unemployment or comp.
- Contractor rules differ.
Common mistakes
- Budgeting gross as cost.
- Forgetting the FICA match.
- Mixing periods across inputs.
- Reading total as take home.
- Applying employee FICA tables twice.
Try it yourself
Quick checks. Answers sit tucked under each question.
$4,000 gross, $200 benefits?
FICA $306.00, total $4,506.00.
$10,000 gross, no benefits?
FICA $765.00 (10,000 x 7.65), total $10,765.00 with no benefits.
Questions
True cost?
Gross plus 7.65% FICA plus benefits. Here $5,882.50.
Employer FICA?
Gross times 7.65%. Here $382.50.
Benefits input?
Health, retirement match, and time off dollars. Here $500.
All employer taxes?
No. Unemployment, comp, and payroll fees sit outside.
State payroll taxes?
No. State rates and wage bases differ.
Contractors same?
No. Contractor math skips FICA match but adds risk.