Robert Morris funded the Continental Army out of his own pocket — because he knew the true cost of every decision. Base salary is just the beginning. Find out what an employee actually costs your business.
Payroll taxes use a flat 9.65% employer estimate (FICA + federal/state unemployment). Actual rates vary by state and wage base — treat this as a planning figure, not tax advice.
You pay 7.65% of each employee's wages in FICA (Social Security + Medicare), plus federal and state unemployment taxes — roughly 9–10% of salary before anything else.
Health, dental, and vision alone run 20–30% of salary. Add 401(k) matching, PTO, and life insurance and you're quickly at 40–50% for competitive packages designed to attract senior talent.
A widely-cited estimate puts the true cost of an employee at 1.25–1.4× base salary before equipment or space. Use this calculator for a number specific to your situation, not a generic rule.
Recruiting fees, onboarding time, and productivity ramp-up make year one significantly more expensive. Many founders underestimate this by 20–30% when building a hiring budget.
Honest Abe in StellaPop CommandHub helps founders think through hiring strategy and operational costs for their specific business.