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Calculate Estimated Cost of Labor

Add Employee(s)

You can add up to 3 employees via the button below. Be sure to include information in both Hours and Wages & Benefits. You will need to do this for each employee.

Add Employee(s)

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another employee
Employee
Enter the total hours a potential employee might work as you plan for the coming season. For example, you might hire a person part time in early spring and then shift them to full time later in the year. Some employees might work for you for 3 months while others work for you for 5 months.
Enter the employee's hourly wage and the annual value of any benefits you provide. Payroll taxes will be factored in below.
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Payroll Taxes

It is important to review the following information before completing this section. Last updated 5/8/2025

FICA:
Current rate is 7.65% (6.2% for the Social Security + 1.45% for Medicare).

FUTA:
Current rate is 6% (unchanged since 1983).

Only the first $7,000 in wages are taxed (this will be auto-calculated when you submit the form).

Farm owners begin paying FUTA when they have payroll costs of at least $20,000 in a calendar quarter or they have 10 or more employees, or 10 or more individuals in agricultural labor during at least some part of a day (whether or not at the same time) during any 20 or more different weeks. If neither is true for you, you do not need to pay FUTA and can change the value to 0%.

SUTA:
You need determine your state's rate and wage base. Rates are lower for new employers (for the first year) and then it increases. For your convenience, we have compiled a table of wage bases and tax rates for each state.

The majority of states use the same threshold for farm businesses as FUTA ($20,000 in payroll for a calendar quarter or 10+ employees). However, some states have a lower threshold, so it is wise to do some research. If you are confident that you will not be required to pay SUTA, enter 0 for both fields.

See our resource on Payroll Taxes & Farm Businesses for more information.
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Workers' Compensation

Workers' Compensation is complicated and generally not based on a simple percentage, but for the purposes of this tool, a percentage is used to to make things more simple. Paying into a Workers' Compensation Insurance program is recommended for all business even though it is not a requirement for all farms in all states.

In the absence of detailed information on Workers' Compensation costs, 6% is a reasonable number to use to get an idea of total estimated labor costs.

See our resource on Workers' Compensation & Farm Businesses for more information.
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