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What does this hire actually cost you?
The salary number is just the starting point. Add employer FICA, FUTA, SUTA, workers comp, benefits, and overhead — and a $60,000 hire typically costs $72,000–$84,000 fully loaded. See the real number, and the revenue this employee needs to generate before the hire breaks even.
2026 rates · Illustrative estimate · Not tax advice
Employee cost calculator
See the true cost of a hire before you make it.
A $60,000 salary hire typically costs $72,000–$84,000 fully loaded. Enter your numbers to see the complete employer cost — FICA, FUTA, SUTA, workers comp, benefits, and overhead — and the revenue this employee needs to generate to break even.
Your numbers
Pre-filled by industry. Verify with your carrier — actual rates vary by classification code.
Applied to first $7,000 of wages in California. New-employer rate — adjusts based on your experience rating.
Benefits
Number of employees
Cost breakdown — per employee, annually
True annual cost
$40,238
per employee
True hourly cost
$24.18
vs $22.00 wage
Loaded multiple
1.10×
of base wages
Does this hire pencil out?
Default 60% — typical for service businesses. Restaurants are often 35–45%; high-margin services 65–80%.
Break-even revenue this employee must generate
$67,063
At 60% gross margin, $40,238 in cost requires $67,063 in revenue to break even.
Illustrative estimates only. Uses 2026 employer tax rates: Social Security 6.2% (wage base $184,500), Medicare 1.45%, FUTA 0.6% net on first $7,000. SUTA rates and wage bases are new-employer rates by state — your actual rate adjusts based on your experience rating and state UI notices. Workers comp rates are industry estimates — verify with your carrier; actual rates depend on your classification code and experience modification factor. Does not include state-specific mandates (CA SDI, CA paid sick leave, NY PFL, etc.), training costs, or equipment. Does not constitute tax, legal, or HR advice. Confirm all payroll tax obligations with your CPA and payroll provider.
Also read
Payroll Taxes for Employers: FICA, FUTA, SUTA, Deposit Schedules, and the Trust Fund Penalty
When you hire employees, you're responsible for withholding and remitting payroll taxes on a strict schedule. Late deposits trigger penalties starting at 2%. The trust fund penalty — 100% of withheld taxes, assessed personally — is not theoretical.
Read Business operationsEmployee vs Independent Contractor: How the IRS Classifies Workers and the Cost of Getting It Wrong
Classifying a worker as a contractor when the IRS considers them an employee creates substantial liability — back payroll taxes, penalties, and interest going back years. The IRS three-category test, California's ABC test, and how to protect yourself.
Read Business operationsDoes Hiring This Person Actually Pencil Out?
The fully loaded cost of an employee vs. the salary number — employer FICA, FUTA, SUTA, workers comp, benefits, and the revenue math behind whether a hire breaks even.
ReadWork with Matt
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Matt Reese, CPA works with business owners who have employees to get payroll taxes right, evaluate the true cost of each hire, and coordinate the bookkeeper and CPA picture so there are no year-end surprises.
Tax services provided through Matt Reese, CPA. This page is educational and does not constitute tax or investment advice.