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Fully-loaded labor forecasting

Fully loaded cost formulas are often calculated yearly, usually during benefits open enrollment and/or bulk insurance renewals (the two costs most likely to change, year-over-year).

Looking for a ballpark?1.2x–1.4x base salary will get you “close enough.” For the more industrious… here you go.
Incremental Costs (%)TypicalYours
Federal Insurance Contributions Act (FICA)Required
Social Security 6.2% + Medicare 1.45%; the SS half caps at the $184,500 wage base. Identical for every employer.
7.65%%
Unemployment InsuranceRequired
FUTA 0.6% on the first $7,000, plus state SUTA. Small employers pay higher rates.
0.5–1.5%%
Workers’ Compensation InsuranceRequired
Benchmarked by state and industry. Usually under ~1% for desk work, higher for physically active roles.
0.3–2%%
Health InsuranceRequired 50+
Amount of medical benefit premiums covered as the employer. Typically higher for <100 employee companies, but decreases as company grows.
8–14%%
Disability & Life InsuranceOptional
Short-term disability, long-term disability, and group life insurance for staff.
0.5–1.5%%
Employee Retirement MatchingOptional
Safe harbor basic match: 100% of the first 3% + 50% of the next 2%, up to 4% of pay.
3–4%%
3rd Party Software and TokensOptional
Per-seat SaaS plus AI and LLM token spend at early scale. Trends down as you negotiate volume pricing.
2–4%%
Incremental Load22–35%27%
Salary Multiple (before flat costs)1.2x–1.35x1.27x
Incremental Costs (Flat)TypicalCost / Staff
Starter EquipmentRequired
Laptop, Desk, Keyboard etc.
$1,000–3,000$
Office Space AllocationOptional
(If you have an office) The cost of that office, divided proportionally across all staff in that office.
Lease Cost$ ÷Desks= $10,000
Flat Cost / Staff$11,500
$
Fully-Loaded Cost / Staff$138,500
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