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True Employee Cost Calculator

An employee earning $25/hr actually costs you $35-45/hr. Know the real cost before you hire.

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Employer Taxes

Workers comp rates vary by trade: 3-8% for office, 5-15% for field work

Benefits

Other Annual Costs

40%Rest is travel, admin, training, etc.85%

True Annual Cost

Enter employee details to see true cost

Hourly Breakdown

Hourly breakdown will appear here

Understanding Employee Costs

The 1.25-1.4x Rule

A common rule of thumb: an employee costs 1.25x to 1.4x their base salary. For trades with high workers comp and equipment costs, it can be 1.5x or higher. Use this calculator to get your actual number.

Employer Tax Breakdown

  • FICA (Social Security/Medicare): 7.65% of wages (employer portion)
  • FUTA (Federal Unemployment): 0.6% on first $7,000
  • SUTA (State Unemployment): 2-5% on first $7,000-15,000 (varies by state)
  • Workers Comp: 1-15%+ depending on risk class

Workers Comp by Trade

  • Office/Admin: 0.5-1%
  • HVAC Technicians: 5-8%
  • Electricians: 4-7%
  • Plumbers: 4-6%
  • Roofers: 15-25%

Billable vs. Non-Billable Time

Field techs typically spend only 60-70% of their time on billable work. The rest includes:

  • • Driving between jobs
  • • Morning meetings and paperwork
  • • Parts runs and warehouse time
  • • Training and certifications
  • • Callbacks and warranty work

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