Employee Cost Calculator – True Burden Rate

An employee costs far more than salary. Add employer payroll taxes, health and retirement benefits, paid leave, workers comp, equipment, software seats and workspace. The sum typically lands at 1.25-1.4× gross salary, called the burden rate. Worked example: a $60,000 salary with 7.65% employer FICA ($4,590), $6,000 health insurance, $1,800 401k match, $2,400 paid leave and $3,000 equipment totals about $77,800 — a 30% burden. Price services off this loaded figure, never off salary alone. Reload the calculation whenever benefits or headcount plans change, and at minimum once every fiscal year.

1. 1

   Enter gross salary

   Annual base pay before any deductions.

2. 2

   Add burden items

   Employer taxes, benefits, leave, equipment and workspace.

3. 3

   Read loaded cost

   Total annual and hourly loaded rate appear.

• Budgeting salary only and being surprised by a 30% benefits gap

• Forgetting employer taxes when comparing contractor rates

• Excluding equipment, software and workspace from the loaded rate