True cost of hiring
The exact cost of every hire, before you sign the offer.
W-2 or 1099? HiringMath computes the all-in cost — employer FICA, FUTA, state unemployment, workers' comp, benefits, and overhead — for all 50 states, and flags the misclassification risk the payroll vendors won't.
- 51
- States + DC covered
- 7.65%
- Employer FICA
- 1.32×
- Typical loaded cost
What's in the number
Salary is the smallest part of the bill.
A $75,000 salary in Texas actually costs an employer $99,323 — that's $24,323 on top of base pay. Here is exactly where every dollar goes.
Example: $75,000 base · Texas · default benefits.
Cost by state
Payroll tax is a state-by-state game.
Unemployment insurance rates and wage bases swing the cost of a hire by thousands. Start with the biggest hiring markets, or see all 51 jurisdictions.
Decision guide
W-2 vs 1099
The real trade-offs beyond price: control, IP, ramp time, and the breakeven contract rate where a 1099 stops being cheaper.
Read the guideRisk
Misclassification penalties
Call a worker a 1099 who should be a W-2 and the bill is back taxes, interest, and penalties — up to $25,000 per violation in some states. See the rules by state.
See penalties by stateFAQ
Questions employers ask.
- What does it really cost to hire a W-2 employee?
- More than the salary. On top of base pay, an employer owes 7.65% FICA (Social Security + Medicare), FUTA, state unemployment insurance, workers' compensation, plus any benefits and overhead. The fully-loaded cost typically runs 1.25–1.4× the base salary.
- Is a 1099 contractor always cheaper than a W-2 employee?
- On paper, usually — you pay only the contract amount, with no employer payroll taxes, benefits, or workers' comp. But the comparison isn't just price: misclassifying a worker who should be a W-2 employee exposes you to back taxes, penalties, and back wages. HiringMath shows the breakeven contract rate so you can compare honestly.
- What is the employer payroll tax rate in 2026?
- Federal employer payroll tax is 7.65% FICA — 6.2% Social Security on the first $176,100 of wages and 1.45% Medicare on all wages — plus 0.6% net FUTA on the first $7,000. On top of that, each state charges its own unemployment insurance (SUI), averaging about 2.07% for new employers.
- How accurate are these numbers?
- Federal constants come from IRS Publication 15; state SUI rates and wage bases come from each state's unemployment agency. The calculator defaults to new-employer SUI rates — the rate a business faces on its first hire. Figures are estimates for planning, not tax, legal, or accounting advice.