How to Calculate the Cost of an Employee
To calculate the cost of an employee - factor in:
Gross Wage
+ Employer portion of Social Security Tax = 6.2%
+ Employer portion of Medicare Tax = 1.45%
+ Employer portion of State Unemployment (rates vary and are based on numerous factors, consult your state unemployment division to secure your exact rate)
+ Federal Unemployment = 0.6% of the employees first $7,000 in wages each year ($42.00 per employee per year)
+ Work Comp Insurance (rates vary depending on industry/type of work, consult your insurance agent to secure your exact rate)
+ Employer Paid Benefits