Payroll / Free financial tools

Employer Cost & Payroll Calculator

See the annual cost of hiring beyond salary, including employer payroll taxes, benefits and productive-hour cost.

US federal • 2026 · Instant results · No sign-up

Enable JavaScript to use this interactive calculator. The calculation method and assumptions are explained below.

How this calculator works

Total employer cost adds gross salary, employer Social Security and Medicare, benefits, retirement contributions and entered employment costs. Divide by productive hours to estimate the cost of an hour of usable capacity.

Planning estimate only. Review the assumptions alongside the result before using it for a tax, financing or business decision.

IRS 2026 tax tables · SSA 2026 payroll wage base

Common questions

Why use productive hours?

Paid time off, training and nonbillable work reduce the hours available for client or production work. Use a realistic annual estimate.

Does this calculate employee take-home pay?

No. This tool models the employer's cost. Use the income-tax calculator for an employee's simplified annual take-home estimate.

Put your numbers into context.

A calculator can help you ask better questions. Tell ZTax what you are planning and we will discuss the records, scope and support you need.

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