Accounting: Employee Cost Calculator


For every planned new hire, it’s important to know in advance what the total cost of employing the person will be.  This includes wages, taxes, and employer sponsored benefits expense.  In addition, it is necessary to derive the cost per billable hour (Loaded Hourly Rate) in order to know if this hire will contribute to the company’s profit within its pricing model.


This small worksheet identifies the real cost of candidates being considered to fill an open position:



Key to worksheet updates:

  1. Update cells B8 to C12 each year with annual tax rates and limits
  2. For each employee, enter all blue fields including Holiday and PTO days


Use of data:

  1. Total cost of the employee (cell E25) is used to measure impact on annual Budget/Fcst
  2. Loaded Hourly Rate allows calculation of contribution margin for setting the billing rate
  3. Payroll Overhead percentage can be used in general to mark up Salary to full cost




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