The wage is only part of the story. Payroll taxes, unemployment, and workers' comp ride along with every paycheck. Here's what a hire in Ohio really costs.
Every dollar of wages comes with required extras: the employer half of Social Security and Medicare, federal and state unemployment taxes, and workers' comp coverage. Before benefits, that usually adds roughly 10–12% on top of the wage — more in higher-risk trades.
Why it matters: when you price a job, the labor line should use the true hourly cost, not the wage. Bid a job at $25/hour of labor when your tech really costs $28, and you quietly give away the difference on every billed hour. It also tells you the real revenue a new hire needs to bring in before they pay for themselves.
Thinking about your first hire? We'll help you run the numbers on YOUR business — what a hire costs, what they need to bring in, and whether the cash flow is there.
Book a Free ConsultationEstimates only, based on 2026 rates: employer FICA 7.65% (Social Security 6.2% on the first $184,500 of wages + Medicare 1.45%), federal unemployment 0.6% on the first $7,000 of wages, and Ohio unemployment at the 2026 new-employer rate of 2.85% on the first $9,500 of wages (construction companies pay a higher new-employer rate of 5.85%, and rates change over time with your claims history; Ohio also adds a small 0.15% technology fee on the first $9,000 of wages, not included above — about $14/year). Workers' comp premiums vary widely by job classification and your claims record — verify your actual rate with the Ohio BWC or your policy. This tool doesn't include recruiting, training, overtime, paid leave, or payroll service fees, and it isn't tax or legal advice. Verify current rates before making hiring decisions.