FREE TOOL · MANAGER-FACING
Pay Raise Impact Calculator
See both sides of a raise: what the employee actually takes home, and what it truly costs the company — including FICA, FUTA, and SUTA.
$
$
+13.6% raise · +$6,240.00/yr gross
Employee Gets (per Bi-Weekly check)
+$156.84
65% of the raise lands in their pocket
True Cost to Employer (per Bi-Weekly)
+$258.36
$1.077 cost per $1.00 of raise
Annual Impact Summary
Gross Raise / Year
$6,240.00
Employee Take-Home / Year
+$4,077.84
Total Employer Cost / Year
$6,717.36
Employee Impact — Per Bi-Weekly Paycheck
Gross pay increase+$240.00
Social Security (6.2%)
−$18.36Medicare (1.45%)−$3.48
Federal income tax (22% supplemental est.)−$52.80
State income tax (~5% est.)−$12.00
Net take-home increase+$156.84
* Federal income tax estimate uses 22% supplemental rate. Actual withholding depends on the employee's W-4 elections and YTD wages. State rate is configurable in Advanced Options.
Employer Burden — Additional Cost Beyond Base Raise
Base raise cost per bi-weekly+$240.00
Employer Social Security (6.2%)
+$14.88Employer Medicare (1.45%)+$3.48
FUTA impact (annualized, 0.6% on first $7k)+$0.00
SUTA impact (2.7%, annualized)+$0.00
Total employer cost per bi-weekly+$258.36
* FUTA and SUTA are wage-base limited and shown as amortized per-period amounts. Actual impact depends on when in the year the raise takes effect. SUTA rate is configurable.
Rule of Thumb
For every $1.00 of gross raise, the employee takes home approximately $0.65 and the employer pays approximately $1.077. That 7.7% employer overhead is mostly FICA.