Employer Payroll Cost Calculator

Salary is only part of what an employee costs. Estimate the fully loaded cost including employer taxes, benefits and payroll overheads.

What “loaded cost” means

The loaded cost of an employee is everything you pay to employ them, not just their salary: employer payroll taxes and social contributions, health and pension benefits, and the overhead of running payroll. Knowing the multiplier helps with pricing your services, budgeting hires and comparing employees with contractors.

Choosing payroll software

Most small-business payroll platforms charge a monthly base fee plus a per-employee fee. Higher tiers add HR features such as onboarding, time tracking and benefits administration. The software itself is usually a small share of total employment cost, so prioritise accuracy, tax filing coverage for your locations and support quality over a few dollars per head.

• Confirm the provider files taxes in every state or country where you have staff.
• Check whether contractor payments are included or extra.
• Ask about year-end forms, off-cycle runs and correction fees.

Worked example

Ten employees on an average salary of $55,000 cost $550,000 in wages. Add employer payroll taxes, health benefits at a few hundred dollars per employee per month, payroll software at roughly $100–200 per month and a few hours of admin, and the fully loaded cost can be 20–35% higher than salaries alone, depending on location and benefits. The loaded cost multiplier helps you price services and budget hires accurately.

Employee or contractor?

Contractors avoid employer taxes and benefits but cost more per hour, and misclassifying an employee as a contractor can bring penalties. Use the loaded multiplier to compare offers fairly, and take advice if a contractor works full time under your direction.