Calculate the true total cost of an employee. Base salary is typically only 70-80% of actual cost when you include benefits, taxes, and overhead.
Compensation
The employee's annual base salary before taxes
Benefits (Annual Employer Cost)
Annual employer contribution
401k match as % of salary
Paid Time Off
Vacation + sick days + holidays per year
Equipment & Development
Computer, desk, software licenses
Training, conferences, courses
Administrative Overhead
HR, payroll processing, management time (typically 3-8%)
Payroll taxes are calculated automatically: Social Security (6.2%), Medicare (1.45%), FUTA (0.6%), and estimated state unemployment (2.5%).