This startup salary calculator shows the real salary amount, that the founder gonna pay to employees. The final number includes the nominal salary and adjusting to taxes, holidays, vacation and indirect spending. Many entrepreneurs do not include these spending while choosing among different types of executors. We tried to solve this problem and made a flexible calculator that will show you the real costs of maintaining employees in the USA.
How does the startup salary calculator work?
This calculator assumes that the hourly rate entered is the final amount that the employer is willing to pay. But in fact, there are still many unaccounted expenses:
Holidays and Vacation Days. The United States doesn’t federally mandate any paid vacation days or holidays. So, if you'd provide employees with paid day-offs, the final salary costs increase.
Taxes. As an employer, any startup founder should pay the following taxes. The summary taxes cost is 10,35%, which depends on the employee salary:
Social Security - 6,2% of salary
Medicare - 1.45% of salary
State Unemployment Tax - 2.7% of salary
Office rental price. According to Workspace Regulations, the minimum workspace in the office must be at least 40 square feet. However, the average private sector work area at approx 120 square feet per employee. So, the calculator takes 80 square feet per employee as a default.
Accountant expenses. As PwC report said, an average time consumption to manage taxes is 175 hours. Our salary calculator use this number as a default.
Summary costs. That column sums up all additional expenses, that overlie the unadjusted price: taxes, office rent, accountant.
How to manage startup salaries wisely?
The startup salary calculator helps you to correctly find out the real costs of each salary in your startup. It shows how taxes and indirect spending influence the economy of your startup from the very start. The point is, that startup founder salary and startup developer salary do not include many of these factors. So each time, when you will look for an additional team member, use our startup salary calculator to define the real in-house cost of each team member in the US. But there is a trick on how to manage your startups costs wisely. Look at other employee options. Consider people not only as a part of an in-house team but also to check out our staff possibilities. Use our out staff costs to find out how much budget you will save while outsourcing the development process.