Free tool · Know your numbers

What a hire really costs.

The wage is only the start. Add payroll taxes, insurance and benefits, then spread the total over the hours you can actually bill. That’s the number your prices have to cover.

Tax rates are filled in as of 2026, and you can change every one. Check them with your payroll provider or accountant.
Workers’ comp depends on your trade, state and insurer, so there’s no default. Your rate per $100 of payroll is on your policy.
Billable hours are the hours a customer pays for. Time off, drive time and shop time are paid but not billed.
This is a planning tool, not tax advice. Everything runs in your browser and nothing is sent anywhere.

Pay

Hourly wage

Paid hours per week

Regular hours, before overtime.

Weeks paid per year

52 if you pay for holidays and time off.

Overtime hours per week

A yearly average. Paid at 1.5 times the wage.

Payroll taxes, as of 2026

Social Security

6.2% from the employer.

Social Security wage base

Wages above $184,500 aren’t taxed in 2026.

Medicare

1.45% with no wage cap. The extra 0.9% on pay over $200,000 comes out of the employee’s pay only. You don’t match it.

Federal unemployment (FUTA)

6.0% minus up to a 5.4% credit.

FUTA wage base

The first $7,000 of each worker’s wages.

California employers paid an extra 1.2% (1.8% in all) for tax year 2025 because of a federal credit reduction. The list for 2026 is final after November 10, 2026.

State unemployment rate

Arizona new employers: 2.0% in 2026.

State wage base

Arizona: the first $8,000 of wages.

Your state sends you your own unemployment rate each year. Other states use different rates and wage bases, so change both if you’re not in Arizona.

Insurance and benefits

Workers’ comp rate per $100 of payroll

Look on your policy for the class code that fits this job, or ask your insurance agent. It depends on your trade and state, so there’s no default.

Health insurance, your share per month

What you pay toward their plan. 0 if none.

Retirement match

Share of wages you put into their plan. 0 if none.

Other yearly costs

Tools, uniforms, phone, vehicle and training for this person.

Billing

Share of paid hours you can bill

Time off, drive time, shop time and training are paid but not billed. 70% is a fair place to start.

Target gross margin

The share of each billed hour left after this person’s cost.

Total yearly cost

$69,553

That’s $14,017 (25.2%) on top of $55,536 in wages.

Per paid hour: $31.11
Per billable hour: $44.44
Bill at least: $88.87/hr; For a 50% margin

Workers’ comp isn’t counted yet. This total is missing it. Add your rate per $100 of payroll to finish the number.

Taxes, insurance and benefits alone add 20.7% to wages, before workers’ comp. That’s the labor burden to use in the Job Profit Calculator.

Every cost, line by line
Cost	Per year	Per paid hr
Regular wages40 hrs × 52 wks × $24.00	$49,920	$22.33
Overtime wages3 hrs × 52 wks × $36.00	$5,616	$2.51
Social Security6.2% of $55,536	$3,443	$1.54
Medicare1.45% of $55,536	$805	$0.36
Federal unemployment (FUTA)0.6% of $7,000	$42	$0.02
State unemployment2% of $8,000	$160	$0.07
Workers’ compRate not entered yet	$0	$0.00
Health insurance$450 × 12 months	$5,400	$2.42
Retirement match3% of $55,536	$1,666	$0.75
Other yearly costsTools, uniforms, phone, vehicle, training	$2,500	$1.12
Total	$69,553	$31.11

The math: $69,553 ÷ 2,236 paid hours = $31.11 per paid hour. Billing 70% of those hours = 1,565 billable hours, so $44.44 per billable hour. Divided by (1 − 50%) = $88.87 an hour. Rates are as of 2026. This is not tax advice. Your numbers never leave this page.

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