The hiring worksheet / 01

Employee cost calculator

What will that offer cost your business? Add pay, employer taxes, and benefits.
See the annual budget and the monthly commitment.

2026 federal parameters
Reviewed September 28, 2026

Build your employee budget

One employee · USD

1 Pay
2 Employer costs
3 Your estimate

Start with the pay.

Budget for one full calendar year. Use gross pay, before employee taxes or deductions.

How will you pay this employee?

Salary is annual base pay. Hourly pay uses your paid hours and weeks.

Annual base salary ($)

Enter the offer you’re considering. Leave bonuses and overtime for the next field.

Additional annual cash pay ($)

Include bonuses, commissions, and total overtime pay, including the premium. Blank means $0.

Already paying for time off? Don’t add it again. Annual salary and paid hourly weeks already include that pay.

Add the employer costs.

Use your share of each cost. Benefits and overhead left blank count as $0. Unknown taxes and insurance stay marked as missing.

Benefits per month ($)

Your cost for health coverage and other nontaxable benefits. For seasonal hires, divide the annual amount by 12.

Retirement contribution (%)

Your estimated effective contribution as a percent of all cash pay. Check eligibility and plan limits; this is not a legal limit calculation.

Taxes & insurance

Federal Social Security and Medicare are included automatically. The following costs depend on your business.

Federal unemployment (FUTA) assumption

Applied to the first $7,000 of annual pay. The 0.6% option assumes the full 5.4% credit and no credit reduction. Confirm eligibility and the final 2026 credit-reduction rules.

Annual state & local employer taxes ($)

Use a payroll quote or your rate notice and wage base. Include state unemployment and employer leave or disability charges. Blank means unknown; 0 means you’ve confirmed none.

Annual workers’ comp premium ($)

Use a quote for this role, payroll, and location. Blank means unknown; enter 0 only if no cost applies.

Getting them ready to work

Other recurring costs per month ($)

Add payroll service, software, and recurring equipment or workspace costs for this employee. Blank means $0.

One-time hiring & setup costs ($)

Recruiting fees, a laptop, and other first-year purchases. Don’t repeat costs already included above. Blank means $0.

Your hiring budget

Your estimated employee cost

First-year estimateper year

First year ÷ 12monthly average

Estimated cost breakdown · rounded to the nearest dollar
Cost	Annual	Monthly avg.

What this estimate assumes

Monthly figures are annual costs divided by 12, not a payroll or payment schedule. Rounded rows may not add up exactly.

Two offers, side by side

Scenario A is your saved estimate. Scenario B uses your latest answers. All values are planning estimates.

Scenario comparison · USD
Measure	Scenario A	Scenario B

Keep your hiring worksheet

Take the numbers with you.

Download a PDF with your cost breakdown, assumptions, and any saved scenario comparison. Unknown costs stay clearly marked.

Free PDF · No email required · Created in your browser

No sign-up. Calculations stay in this tab. Reloading clears them.

From estimate to decision

Look at the ongoing cost.
Then the first-year extras.

A laptop and a recruiting fee belong in the first-year budget. They don’t necessarily belong in next year’s monthly commitment. Your result separates those one-time costs from recurring expenses.

To compare offers, save your first estimate as Scenario A, change the salary or benefits, and calculate Scenario B. If the pay changes, update any payroll-based insurance or state-tax quote too.

Before you use the number

What does “monthly cost” actually mean?

It’s the annual budget divided by 12. It helps you compare hiring with recurring revenue, but it won’t match every month’s cash needs. Recruiting bills, benefit renewals, and payroll-tax payments can land at different times.

Why aren’t state taxes filled in for me?

State unemployment depends on your assigned rate and taxable wage base. Location, experience rating, and other employer programs can change the bill. Enter an annual employer amount from your payroll provider or applicable state agency. A blank field remains an unknown cost, not a claim that the cost is zero.

How should I account for overtime or taxable benefits?

Add total expected overtime pay to additional annual cash pay. Check federal and state overtime requirements before estimating it. This model treats entered cash pay as taxable for employer Social Security, Medicare, and FUTA, and the benefits field as nontaxable. Taxable noncash benefits, differing tax bases, and special exemptions need a payroll-specific calculation.

Does this tell me whether I can afford to hire?

It gives you the expense side of the decision. Compare the ongoing monthly estimate with the margin the role can support, then allow for training time and slower months. This tool does not forecast revenue, productivity, tax deductions, or the value of the employee’s work.

Federal parameters reviewed September 28, 2026. Sources, formulas, and scope.