Payroll Calculator
Estimate your total payroll cost including employer taxes. Helps small businesses budget accurately for staff.
💰 Financial Disclaimer: This calculator is for educational purposes only. Consult a qualified financial professional.
How It Works
Calculates gross payroll (employees × hours × rate), adds employer FICA taxes (7.65%), and optional benefits.
Formula
Gross = Employees × Hours × Rate
Employer FICA = Gross × 7.65%
Total = Gross + FICA + Benefits
Example
5 employees, $20/hr, 40 hrs/week:
Gross $4,000/week. Monthly total ≈ $19,129
When to Use This Calculator
Use for hiring budgets, estimating the full cost of a new hire, or validating a payroll run before processing.
Common Mistakes to Avoid
- Forgetting employer-side payroll taxes — employees pay half FICA; you pay the other half.
- Not budgeting benefits — health insurance and 401(k) add 20–30% above gross.
- Missing state unemployment tax (SUTA) — rates vary by state.
Frequently Asked Questions
Employer payroll tax rate?
Federal: 6.2% SS + 1.45% Medicare = 7.65% total on gross wages.
Total employee cost?
Plan for 25–40% above gross salary for all taxes and benefits.
Most common payroll frequency?
Bi-weekly (26/year) is most common in the US.
Part-time employees and benefits?
Not required by law under 30 hours/week (ACA threshold for large employers).
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Last Updated: July 4, 2026