How This Payroll Burden Calculator Works
A payroll burden (or fully burdened cost) is everything an employer pays for a worker beyond base salary. This calculator adds up the main US components, using the actual 2026 payroll tax rules instead of a flat percentage, so the result is accurate for both a $60,000 hire and a $250,000 one.
2026 US Employer Payroll Taxes
| Tax | Employer rate | Wage limit |
|---|---|---|
| Social Security | 6.2% | First $184,500 (maximum $11,439) |
| Medicare | 1.45% | No limit. The extra 0.9% above $200,000 is paid by the employee only. |
| FUTA (federal unemployment) | 6.0%, reduced to 0.6% with the state credit | First $7,000 |
| State unemployment (SUTA) | Varies by state and employer | Varies. For example $30,600 in Colorado and $14,500 in Delaware in 2026. |
Rates and limits are as summarized for 2026 by payroll providers (OnPay, QuickBooks) from IRS and Social Security Administration figures. Employer contributions to a 401(k) are generally not subject to FICA. Some states and cities add their own payroll taxes, such as paid family leave, which this calculator does not include.
Health Insurance Costs
The KFF 2025 Employer Health Benefits Survey found average annual premiums of $9,325 for single coverage and $26,993 for family coverage. Workers paid on average $1,440 and $6,850 of those, which leaves employers paying roughly $7,900 and $20,100. These are averages across firms with 10 or more workers. Premiums have risen about 5–6% a year recently, so 2026 costs are likely higher.
Worked Example
A $100,000 hire with single health coverage, a 3% 401(k) match, 1% for workers' comp and other insurance, $5,000 of overhead, and the placeholder state unemployment values:
- Social Security $6,200 + Medicare $1,450 + FUTA $42 + state unemployment $243 = $7,935 in payroll taxes.
- Health $7,900 + 401(k) match $3,000 + other insurance $1,000 = $11,900 in benefits and insurance.
- Plus $5,000 of overhead, the true cost is about $124,835, a 1.25x multiplier.
- With family coverage instead of single, the cost rises to about $137,035 (1.37x).
So a hiring plan built on salary alone misses roughly $25,000–$37,000 per hire in this case. Ten such hires leave a gap of about $250,000–$370,000 a year in your burn rate and runway model.
What This Calculator Leaves Out
- Bonuses, commissions and equity: these add payroll taxes and, in some cases, accounting costs.
- State and local payroll taxes: paid family leave, disability insurance and city taxes vary widely.
- Payroll software and HR fees: usually small per head, but not zero.
- Contractors and non-US staff: different rules apply. Misclassifying an employee as a contractor can create tax liability, so check with an advisor.
Payroll Burden FAQ
What is a typical burden multiplier?
For US employees, a multiplier of roughly 1.2x to 1.4x is common, depending mostly on health coverage and overhead. The calculator shows your actual number, which is better than a rule of thumb.
Why does the burden percentage fall as salary rises?
Social Security stops at $184,500, and health insurance and unemployment taxes are mostly fixed amounts, so they become a smaller share of a larger salary.
Should I use this number in my startup financial model?
Yes. Investors expect hiring plans to use fully burdened costs. Pair it with the burn rate calculator and check how new hires affect your CAC payback.