Subcontractor vs Employee Cost Calculator
ANA›Life Services Authority›National Calculator Authority›Subcontractor vs Employee Cost Calculator
.calc-container { max-width: 640px; margin: 2rem 0; padding: 1.5rem; background: #fff; border: 1px solid #ddd; border-radius: 8px; box-shadow: 0 1px 3px rgba(0,0,0,0.06); font-family: system-ui, -apple-system, sans-serif; } .calc-container h3 { font-family: Georgia, serif; font-size: 1.15rem; color: #1a1a1a; margin-bottom: 1rem; padding-bottom: 0.5rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-row { display: flex; align-items: center; gap: 0.75rem; margin-bottom: 0.75rem; flex-wrap: wrap; } .calc-row label { min-width: 160px; font-size: 0.9rem; color: #333; font-weight: 500; } .calc-row input[type="number"], .calc-row select { flex: 1; min-width: 120px; max-width: 200px; padding: 0.5rem 0.6rem; border: 1px solid #ccc; border-radius: 4px; font-size: 0.9rem; font-family: system-ui, sans-serif; color: #1a1a1a; background: #fafaf8; } .calc-row input:focus, .calc-row select:focus { outline: none; border-color: var(--ac, #3d5a80); box-shadow: 0 0 0 2px rgba(26,74,138,0.12); } .calc-row .unit { font-size: 0.82rem; color: #888; min-width: 30px; } .calc-btn { display: inline-block; margin-top: 0.5rem; padding: 0.55rem 1.5rem; background: var(--ac, #3d5a80); color: #fff; border: none; border-radius: 4px; font-size: 0.9rem; font-weight: 600; cursor: pointer; font-family: system-ui, sans-serif; } .calc-btn:hover { opacity: 0.9; } .calc-result { margin-top: 1.25rem; padding: 1rem 1.25rem; background: #f0f6fc; border-left: 3px solid var(--ac, #3d5a80); border-radius: 0 6px 6px 0; display: none; } .calc-result.visible { display: block; } .calc-result-label { font-size: 0.78rem; text-transform: uppercase; letter-spacing: 0.06em; color: #666; margin-bottom: 0.25rem; } .calc-result-value { font-size: 1.6rem; font-weight: 700; color: var(--ac, #3d5a80); } .calc-result-detail { font-size: 0.85rem; color: #555; margin-top: 0.5rem; line-height: 1.5; } .calc-note { margin-top: 1rem; font-size: 0.8rem; color: #888; font-style: italic; } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 0.75rem; margin-top: 0.75rem; } .calc-grid-item { padding: 0.6rem 0.8rem; background: #f8f9fa; border-radius: 4px; border: 1px solid #eee; } .calc-grid-item .label { font-size: 0.75rem; color: #888; text-transform: uppercase; letter-spacing: 0.04em; } .calc-grid-item .value { font-size: 1.1rem; font-weight: 600; color: #1a1a1a; } @media (max-width: 720px) { .calc-row { flex-direction: column; align-items: flex-start; gap: 0.3rem; } .calc-row label { min-width: auto; } .calc-row input[type="number"], .calc-row select { max-width: 100%; width: 100%; } .calc-grid { grid-template-columns: 1fr; } } .calc-chart { margin: 1rem 0; text-align: center; } .calc-chart svg { max-width: 100%; height: auto; } .calc-chart-legend { display: flex; flex-wrap: wrap; justify-content: center; gap: 0.6rem 1.2rem; margin-top: 0.6rem; font-size: 0.8rem; color: #555; } .calc-chart-legend span { display: inline-flex; align-items: center; gap: 0.3rem; } .calc-chart-legend i { display: inline-block; width: 10px; height: 10px; border-radius: 2px; font-style: normal; } .calc-related { max-width: 640px; margin: 2rem 0 1rem; padding: 1.25rem 1.5rem; background: #f8f9fa; border: 1px solid #e8e8e8; border-radius: 8px; } .calc-related h3 { font-family: Georgia, serif; font-size: 1rem; color: #1a1a1a; margin: 0 0 0.75rem; padding-bottom: 0.4rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-related-list { list-style: none; padding: 0; margin: 0 0 0.75rem; display: grid; grid-template-columns: 1fr 1fr; gap: 0.4rem 1.5rem; } .calc-related-list li a { font-size: 0.88rem; color: var(--ac, #3d5a80); text-decoration: none; } .calc-related-list li a:hover { text-decoration: underline; } .calc-browse-all { margin: 0.5rem 0 0; font-size: 0.9rem; font-weight: 600; } .calc-browse-all a { color: var(--ac, #3d5a80); text-decoration: none; } .calc-browse-all a:hover { text-decoration: underline; } @media (max-width: 720px) { .calc-related-list { grid-template-columns: 1fr; } }
Subcontractor vs Employee Cost Calculator
Compare the true total annual cost of hiring a subcontractor versus a full-time employee, factoring in payroll taxes, benefits, overhead, and productivity differences.
Subcontractor Details
Subcontractor Hourly Rate ($)
Hours Worked per Week
Weeks Engaged per Year
Agency / Placement Fee (% of contract, if any)
Equipment / Tools Provided by You ($/yr)
Employee Details
Employee Annual Base Salary ($)
Health Insurance Premium ($/yr, employer share)
Retirement Match (% of salary)
Paid Time Off Days per Year
Paid Holidays per Year
Other Benefits (dental, vision, life, etc. $/yr)
Overhead Rate (office, HR, IT, admin — % of salary)
Training & Onboarding Cost ($/yr)
Recruiting / Hiring Cost (one-time, amortized $/yr)
Calculate
### 📈 Cost Comparison Summary
SUBCONTRACTOR TOTAL ANNUAL COST
EMPLOYEE TOTAL ANNUAL COST
#### Subcontractor Cost Breakdown
Item Amount
#### Employee Cost Breakdown
Item Amount
#### Effective Hourly Rate Comparison
Metric Subcontractor Employee
function subFmt(n) { return "$" + n.toLocaleString("en-US", {minimumFractionDigits:2, maximumFractionDigits:2}); }
function subRow(label, value, bg) { return '' + label + '' + subFmt(value) + ''; }
function subHRow(label, sv, ev, bg) { return '' + label + '' + sv + '' + ev + ''; }
function subGetVal(id) { return parseFloat(document.getElementById(id).value) || 0; }
function subCalc() { var errEl = document.getElementById("sub-error"); errEl.style.display = "none"; errEl.textContent = "";
// --- Inputs --- var hourlyRate = subGetVal("sub-hourly-rate"); var hoursPerWeek = subGetVal("sub-hours-per-week"); var weeksPerYear = subGetVal("sub-weeks-per-year"); var agencyFeePct = subGetVal("sub-agency-fee"); var equipmentCost = subGetVal("sub-equipment-cost");
var empSalary = subGetVal("sub-emp-salary"); var healthIns = subGetVal("sub-health-insurance"); var retirePct = subGetVal("sub-retirement-match"); var ptoDays = subGetVal("sub-pto-days"); var holidays = subGetVal("sub-paid-holidays"); var otherBenefits = subGetVal("sub-other-benefits"); var overheadPct = subGetVal("sub-overhead-pct"); var trainingCost = subGetVal("sub-training-cost"); var recruitingCost = subGetVal("sub-recruiting-cost");
// --- Validation --- var errors = []; if (hourlyRate 168) errors.push("Hours per week must be between 1 and 168."); if (weeksPerYear 52) errors.push("Weeks per year must be between 1 and 52."); if (empSalary 50) errors.push("Agency fee must be between 0% and 50%."); if (retirePct 25) errors.push("Retirement match must be between 0% and 25%."); if (overheadPct 100) errors.push("Overhead rate must be between 0% and 100%."); if (ptoDays 365) errors.push("PTO days must be between 0 and 365."); if (holidays 30) errors.push("Paid holidays must be between 0 and 30.");
if (errors.length > 0) { errEl.innerHTML = errors.join(""); errEl.style.display = "block"; document.getElementById("sub-result").style.display = "none"; return; }
// ============================================================ // SUBCONTRACTOR COST CALCULATION // ============================================================ // Base contract cost = hourly rate × hours/week × weeks/year var subBaseContract = hourlyRate * hoursPerWeek * weeksPerYear;
// Agency fee applied on top of base contract var subAgencyFee = subBaseContract * (agencyFeePct / 100);
// Total subcontractor cost var subTotalCost = subBaseContract + subAgencyFee + equipmentCost;
// Subcontractor billable hours var subTotalHours = hoursPerWeek * weeksPerYear;
// Effective hourly cost to employer var subEffectiveHourly = subTotalHours > 0 ? subTotalCost / subTotalHours : 0;
// ============================================================ // EMPLOYEE COST CALCULATION // ============================================================ // Payroll taxes (employer share): // Social Security: 6.2% on wages up to $168,600 (2024 wage base) // Medicare: 1.45% on all wages (no cap) // FUTA: 6% on first $7,000 (net 0.6% after state credit) // SUTA: ~2.7% on first $7,000 (national average new employer rate) var SS_WAGE_BASE = 168600; var SS_RATE = 0.062; var MEDICARE_RATE = 0.0145; var FUTA_RATE = 0.006; // net after state credit var SUTA_RATE = 0.027; var SUTA_WAGE_BASE = 7000;
var ssTax = Math.min(empSalary, SS_WAGE_BASE) * SS_RATE; var medicareTax = empSalary * MEDICARE_RATE; var futaTax = Math.min(empSalary, 7000) * FUTA_RATE; var sutaTax = Math.min(empSalary, SUTA_WAGE_BASE) * SUTA_RATE; var totalPayrollTax = ssTax + medicareTax + futaTax + sutaTax;
// Workers' Compensation insurance (~1.5% of salary, varies by industry) var WORKERS_COMP_RATE = 0.015; var workersComp = empSalary * WORKERS_COMP_RATE;
// Retirement match var retireMatch = empSalary * (retirePct / 100);
// PTO cost: salary / 260 working days × (PTO + holidays) var dailyRate = empSalary / 260; var ptoCost = dailyRate * (ptoDays + holidays);
// Overhead cost var overheadCost = empSalary * (overheadPct / 100);
// Total employee cost var empTotalCost = empSalary + totalPayrollTax + workersComp + healthIns + retireMatch + ptoCost + otherBenefits + overheadCost + trainingCost + recruitingCost;
// Employee productive hours (52 weeks × 5 days × 8 hrs − PTO − holidays) var empTotalHours = (52 * 5 * 8) - ((ptoDays + holidays) * 8); var empEffectiveHourly = empTotalHours > 0 ? empTotalCost / empTotalHours : 0;
// ============================================================ // RENDER RESULTS // ============================================================ document.getElementById("sub-total-sub").textContent = subFmt(subTotalCost); document.getElementById("sub-effective-hourly-sub").textContent = "Effective hourly cost: " + subFmt(subEffectiveHourly) + " over " + subTotalHours.toLocaleString() + " hrs";
document.getElementById("sub-total-emp").textContent = subFmt(empTotalCost); document.getElementById("sub-effective-hourly-emp").textContent = "Effective hourly cost: " + subFmt(empEffectiveHourly) + " over " + empTotalHours.toLocaleString() + " productive hrs";
var diff = Math.abs(subTotalCost - empTotalCost); var pctDiff = empTotalCost > 0 ? (diff / empTotalCost * 100).toFixed(1) : 0; var verdictEl = document.getElementById("sub-verdict"); if (subTotalCost
#### Formulas Used
Subcontractor Total Cost
Base Contract = Hourly Rate × Hours/Week × Weeks/Year Agency Fee = Base Contract × (Agency Fee % / 100) Subcontractor Cost = Base Contract + Agency Fee + Equipment Cost
Effective Hourly = Subcontractor Cost / (Hours/Week × Weeks/Year)
Employee Total Cost
Social Security = min(Salary, $168,600) × 6.2% Medicare = Salary × 1.45% FUTA = min(Salary, $7,000) × 0.6% (net after state credit) SUTA = min(Salary, $7,000) × 2.7% (avg new employer rate) Workers' Comp = Salary × 1.5% Retirement Match = Salary × Match % Daily Rate = Salary / 260 working days PTO Cost = Daily Rate × PTO Days Holiday Cost = Daily Rate × Paid Holidays Overhead = Salary × Overhead %
Employee Total Cost = Salary + SS + Medicare + FUTA + SUTA + Workers' Comp + Health Insurance + Retirement Match + PTO Cost + Holiday Cost + Other Benefits + Overhead + Training + Recruiting
Productive Hours = (52 × 5 × 8) − ((PTO + Holidays) × 8) Effective Hourly = Employee Total Cost / Productive Hours
#### Assumptions & References
- Social Security (OASDI): Employer rate 6.2%; 2024 wage base $168,600. IRS Publication 15 (Circular E).
- Medicare (HI): Employer rate 1.45% on all wages; no wage base cap. IRS Publication 15.
- FUTA: Gross rate 6.0% on first $7,000; net 0.6% after the standard 5.4% state credit. IRS Form 940 instructions.
- SUTA: 2.7% on first $7,000 used as the U.S. average new-employer rate; actual rates vary by state and experience rating. U.S. DOL, State Unemployment Insurance Chartbook.
- Workers' Compensation: 1.5% of payroll used as a blended average; rates vary significantly by industry and state. NCCI Workers Compensation Statistical Plan.
- Working days: 260 days assumed (52 weeks × 5 days); used to compute daily salary rate for PTO/holiday costing.
- Overhead: Includes office space, IT, HR administration, and management time. Industry benchmarks typically range 15–30% of salary.
- Subcontractor taxes: The subcontractor is responsible for their own self-employment taxes (15.3%), business expenses, and benefits — not included in employer cost.
- No state income tax or local taxes are included; these vary by jurisdiction.
- Productivity: This calculator assumes equal productivity per hour for both worker types. Adjust hours/weeks to model productivity differences.
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