Why wage times 1.3 is usually wrong

Wage times 1.3 is a shortcut people repeat because it is easy. Easy is not the same as accurate. Depending on state, class code, benefits, and overhead, a fully loaded estimate can land well above or below that factor. The shortcut hides the lines that actually move the total.

What the shortcut flattens

A single multiplier flattens:

• Payroll taxes that vary by state and wage base
• Workers comp that varies by class code
• Benefits, PTO, equipment, and onboarding

When those lines are different, the multiplier is wrong by definition. An itemized estimate does not replace judgment. It replaces the fake precision of 1.3.

A round factor feels confident. An itemized model shows the uncertainty.

Replace the factor with inputs

Enter the lines you can defend.

Use Hiring Cost to enter wage, state, class, benefits, and the rest. Compare the itemized total to wage times 1.3. The gap is the point.

Free, full, and itemized views are included. Pro can save compares if you want them later.

Revisit when any line changes

The factor stays sticky. Your inputs should not.

Useful revisits include:

• New benefits package
• New class code
• New state for the same role
• Higher wage with unchanged benefits

These are educational comparisons from your inputs. They are not tax, legal, accounting, or financial advice.

Dropping the 1.3 habit was the first time our hire estimates matched cash reality.

Keep the model live

Assumptions change. The estimate should change with them.

Replace shortcuts with inputs you can update. Support covers the software, not advisory work.

Open Hiring Cost when you are ready to run your own numbers.