Subcontractor vs Employee Cost Comparison Calculator
ANA›Life Services Authority›National Calculator Authority›Subcontractor vs Employee Cost Comparison 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 Comparison Calculator
Compare the true total annual cost of engaging a subcontractor versus hiring a full-time employee, factoring in payroll taxes, benefits, overhead, and productivity time.
### Subcontractor Inputs
Subcontractor Hourly Rate ($)
Hours per Week
Weeks Engaged per Year
Agency / Placement Fee (% of contract, if any)
Equipment / Tools Provided by You ($/year)
### Employee Inputs
Employee Annual Base Salary ($)
Employer Health Insurance Contribution ($/year)
Employer Retirement Match (% of salary)
Paid Time Off Days per Year (vacation + sick)
Paid Holidays per Year
Training & Development ($/year)
Office / Overhead Allocation (% of salary)
Other Benefits (life insurance, dental, vision, etc.) ($/year)
Calculate
function subCalc() { // --- Gather inputs --- var subRate = parseFloat(document.getElementById('sub-hourly-rate').value); var subHours = parseFloat(document.getElementById('sub-hours-per-week').value); var subWeeks = parseFloat(document.getElementById('sub-weeks-per-year').value); var agencyFeePct = parseFloat(document.getElementById('sub-agency-fee').value) || 0; var subEquip = parseFloat(document.getElementById('sub-equipment-cost').value) || 0;
var baseSalary = parseFloat(document.getElementById('sub-base-salary').value); var healthIns = parseFloat(document.getElementById('sub-health-insurance').value) || 0; var retirePct = parseFloat(document.getElementById('sub-retirement-match').value) || 0; var ptoDays = parseFloat(document.getElementById('sub-pto-days').value) || 0; var holidays = parseFloat(document.getElementById('sub-paid-holidays').value) || 0; var training = parseFloat(document.getElementById('sub-training-cost').value) || 0; var overheadPct = parseFloat(document.getElementById('sub-overhead-pct').value) || 0; var otherBenefits = parseFloat(document.getElementById('sub-other-benefits').value) || 0;
// --- Validation --- var errors = []; if (isNaN(subRate) || subRate 52) errors.push("Weeks per year must be between 1 and 52."); if (isNaN(baseSalary) || baseSalary 100) errors.push("Agency fee must be between 0 and 100%."); if (retirePct 100) errors.push("Retirement match must be between 0 and 100%."); if (overheadPct 200) errors.push("Overhead % must be between 0 and 200%."); if (ptoDays + holidays > 260) errors.push("Total non-working days cannot exceed 260 (52 weeks × 5 days).");
var resultDiv = document.getElementById('sub-result'); if (errors.length > 0) { resultDiv.style.display = 'block'; resultDiv.innerHTML = 'Please fix the following:' + errors.map(function(e){ return ''; }).join('') + ''; return; }
// ============================================================ // SUBCONTRACTOR TOTAL COST // ============================================================ // Base contract cost var subBaseContract = subRate * subHours * subWeeks;
// Agency fee applied to base contract var subAgencyFeeAmt = subBaseContract * (agencyFeePct / 100);
// Total subcontractor cost var subTotalCost = subBaseContract + subAgencyFeeAmt + subEquip;
// Effective hourly cost (subcontractor) var subTotalHours = subHours * subWeeks; var subEffectiveHourly = subTotalCost / subTotalHours;
// ============================================================ // EMPLOYEE TOTAL COST // ============================================================ // 1. 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: 6.0% on first $7,000 (net 0.6% after typical state credit) // SUTA: ~2.7% on first $7,000 (national average new employer rate) var ssTaxable = Math.min(baseSalary, 168600); var ssTax = ssTaxable * 0.062; var medicareTax = baseSalary * 0.0145; var futaTaxable = Math.min(baseSalary, 7000); var futaTax = futaTaxable * 0.006; // net after state credit var sutaTax = futaTaxable * 0.027; // avg new employer SUTA var totalPayrollTax = ssTax + medicareTax + futaTax + sutaTax;
// 2. Retirement match var retireAmt = baseSalary * (retirePct / 100);
// 3. Paid non-working time cost // Working days per year = 260 (52 weeks × 5 days) // Daily rate = baseSalary / 260 var workingDaysPerYear = 260; var dailyRate = baseSalary / workingDaysPerYear; var ptoHolidayCost = (ptoDays + holidays) * dailyRate;
// 4. Overhead var overheadAmt = baseSalary * (overheadPct / 100);
// 5. Total employee cost var empTotalCost = baseSalary + totalPayrollTax + healthIns + retireAmt + ptoHolidayCost + training + overheadAmt + otherBenefits;
// Effective productive hours for employee // Productive days = 260 - ptoDays - holidays var productiveDays = workingDaysPerYear - ptoDays - holidays; var empProductiveHrs = productiveDays * 8; // assume 8-hr workday var empEffectiveHourly = empTotalCost / empProductiveHrs;
// ============================================================ // COMPARISON // ============================================================ var diff = subTotalCost - empTotalCost; var diffAbs = Math.abs(diff); var cheaperOption = diff > 0 ? "Employee" : (diff 0 ? (diffAbs / Math.max(subTotalCost, empTotalCost)) * 100 : 0;
// Multiplier: total employee cost vs base salary var empMultiplier = empTotalCost / baseSalary;
// ============================================================ // FORMAT HELPERS // ============================================================ function fmt(n) { return '$' + n.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ','); } function fmtN(n, dec) { dec = dec || 2; return n.toFixed(dec).replace(/\B(?=(\d{3})+(?!\d))/g, ','); }
// ============================================================ // OUTPUT // ============================================================ var html = '### 📈 Cost Comparison Results ';
// Summary banner if (diff === 0) { html += 'Both options cost the same: ' + fmt(subTotalCost) + ' per year.'; } else { html += '' + cheaperOption + ' is cheaper by ' + fmt(diffAbs) + ' per year' + ' (' + fmtN(savingsPct, 1) + '% savings).' + ''; }
// Side-by-side table html += '' + '' + 'Cost Component' + 'Subcontractor' + 'Employee' + '';
var rows = [ ['Base Compensation', fmt(subBaseContract), fmt(baseSalary)], ['Agency / Placement Fee', fmt(subAgencyFeeAmt), '—'], ['Equipment / Tools', fmt(subEquip), '—'], ['Payroll Taxes (Employer)', '—', fmt(totalPayrollTax)], [' Social Security (6.2%)', '—', fmt(ssTax)], [' Medicare (1.45%)', '—', fmt(medicareTax)], [' FUTA (net 0.6%)', '—', fmt(futaTax)], [' SUTA (~2.7%)', '—', fmt(sutaTax)], ['Health Insurance', '—', fmt(healthIns)], ['Retirement Match', '—', fmt(retireAmt)], ['PTO & Holiday Cost', '—', fmt(ptoHolidayCost)], ['Training & Development', '—', fmt(training)], ['Overhead Allocation', '—', fmt(overheadAmt)], ['Other Benefits', '—', fmt(otherBenefits)], ];
rows.forEach(function(r) { html += '' + '' + r[0] + '' + '' + r[1] + '' + '' + r[2] + '' + ''; });
// Totals row html += '' + 'TOTAL ANNUAL COST' + '' + fmt(subTotalCost) + '' + '' + fmt(empTotalCost) + '' + '';
// Key metrics html += '### 🔍 Key Metrics ' + '' + '' + 'Metric' + 'Subcontractor' + 'Employee' + '' + 'Total Annual Cost' + '' + fmt(subTotalCost) + '' + '' + fmt(empTotalCost) + '' + 'Effective Hourly Cost' + '' + fmt(subEffectiveHourly) + '/hr' + '' + fmt(empEffectiveHourly) + '/hr' + 'Productive Hours / Year' + '' + fmtN(subTotalHours, 0) + ' hrs' + '' + fmtN(empProductiveHrs, 0) + ' hrs' + 'Cost Multiplier vs Base Pay' + 'N/A' + '' + fmtN(empMultiplier, 2) + '×' + '';
// Payroll tax breakdown note html += '' + 'Payroll Tax Detail: SS taxable wages capped at $168,600 (2024). ' + 'FUTA net rate 0.6% and SUTA 2.7% applied to first $7,000 of wages.' + '
';
resultDiv.style.display = 'block'; resultDiv.innerHTML = html; }
#### Formulas Used
Subcontractor Total Cost
Base Contract Cost = Hourly Rate × Hours/Week × Weeks/Year Agency Fee Amount = Base Contract Cost × (Agency Fee % / 100) Subcontractor Total = Base Contract Cost + Agency Fee Amount + Equipment Cost
Employee Total Cost
Social Security Tax = min(Salary, $168,600) × 6.2% Medicare Tax = Salary × 1.45% FUTA Tax (net) = min(Salary, $7,000) × 0.6% SUTA Tax = min(Salary, $7,000) × 2.7% Total Payroll Tax = SS + Medicare + FUTA + SUTA
Retirement Match = Salary × (Match % / 100) Daily Rate = Salary / 260 PTO & Holiday Cost = (PTO Days + Holidays) × Daily Rate Overhead Amount = Salary × (Overhead % / 100)
Employee Total Cost = Salary + Total Payroll Tax + Health Insurance + Retirement Match + PTO & Holiday Cost + Training Cost + Overhead Amount + Other Benefits
Effective Hourly Cost
Subcontractor Effective Hourly = Subcontractor Total / (Hours/Week × Weeks/Year) Employee Effective Hourly = Employee Total / ((260 − PTO Days − Holidays) × 8)
Cost Multiplier
Employee Cost Multiplier = Employee Total Cost / Base Salary (Typical range: 1.25× – 1.40× for fully loaded employee cost)
#### Assumptions & References
- Social Security wage base: $168,600 for 2024 (IRS Publication 15).
- Employer SS rate: 6.2%; Medicare rate: 1.45% (IRS Rev. Proc. 2023-34).
- FUTA net rate: 0.6% on first $7,000 after the standard 5.4% state credit (IRS Form 940).
- SUTA rate: 2.7% on first $7,000 — national average new-employer rate (U.S. DOL).
- Working days per year: 260 (52 weeks × 5 days), standard U.S. assumption.
- Employee workday: 8 hours for productive-hours calculation.
- Overhead covers desk space, utilities, HR administration, IT, and management time.
- Subcontractor is assumed to pay their own self-employment taxes, benefits, and equipment unless specified.
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