The short answer: A $50,000 salary costs about $56,000–$60,000 a year before benefits — roughly a 12–20% markup over salary. Enter your own numbers below and see the real annual cost, month by month, line by line.
Want the full breakdown of what drives each line item? The True Cost of Your First Employee explains salary, payroll taxes, workers’ comp, benefits, and payroll software — the five costs stacked in this calculator.
Employer FICA is applied at 7.65% on the full salary; the Social Security wage-base cap is not modeled, so high salaries read slightly high on FICA. FUTA is a flat $42 (0.6% on the first $7,000 of wages, after the standard credit). SUTA and workers’ comp use the rates you enter — they vary by state, industry, and your experience rating, which is why this tool asks instead of guessing. Figures are pre-tax and exclude recruiting, training, equipment, and overhead. This is a cost estimate, not tax or legal advice.
This calculator is educational, not payroll advice. SUTA rates and workers’ comp rates vary by state, industry, and your employer experience rating — use your actual rates. The Social Security wage-base cap is not modeled, so high-salary estimates skew slightly high. See our Methodology for how our tools are built.