Methodology

How EmployerCost US calculates estimated employer cost

The calculator separates high-confidence federal payroll tax math from lower-confidence state, insurance, and benefits assumptions.

Formula

social_security = min(salary, 184500) * 0.062
medicare = salary * 0.0145
futa = min(salary, 7000) * 0.006
suta = min(salary, state_wage_base) * selected_suta_rate
workers_comp = (salary / 100) * selected_rate_per_100
benefits = salary * selected_benefits_percent
total = salary + social_security + medicare + futa + suta + workers_comp + benefits + admin

Confidence labels

Federal FICA and FUTA are high-confidence when current-year IRS values are loaded. SUTA is medium-confidence unless the user enters the employer's assigned rate. Workers compensation is low-confidence unless the user knows the class-code-specific rate and experience modifier.

Update cadence

Federal and state data should be reviewed annually in Q4/Q1 and again when state agencies publish updated wage bases or rate schedules.