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What Does an Employee Really Cost?
Spoiler: it's not just their hourly rate. Calculate the true cost including taxes, insurance, benefits, and hidden overhead.
Employee Details
$$22
40h
8%
True Annual Cost
$69,471
$5,789/month · $1,336/week
Base Salary
$45,760
Hidden Costs
+$23,711
Multiplier
1.52×
Cost Breakdown
Base Salary
$45,760
65.9%
FICA (SS + Medicare, 7.65%)
$3,501
5.0%
FUTA (Federal Unemployment)
$42
0.1%
SUTA (State Unemployment)
$972
1.4%
Workers' Comp Insurance
$3,661
5.3%
Health Insurance
$7,500
10.8%
Paid Time Off (10 days)
$1,760
2.5%
Training & Certifications
$500
0.7%
Equipment, PPE & Uniforms
$1,200
1.7%
Administrative Overhead (10%)
$4,576
6.6%
💡 Key Insight
A $22/hr employee actually costs you $33/hr when you factor in all employer costs. That's 51.8% more than their hourly wage. Make sure your billing rate covers this.
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