The True Cost of a Hire
A driver doesn’t cost you their wage — they cost their wage plus payroll taxes, workers’ comp, and benefits. Here’s the real number, and a calculator to run yours.
Federal data (BLS) shows benefits + payroll taxes add about 43% on top of wages. A $50,000 driver really costs you closer to $65,000–$72,000once you add FICA, workers’ comp (high for trash trucks), unemployment, and benefits.
True cost to employ
$65,168/yr
$49,690 base wage + $15,478in taxes & benefits (+31%) · ~$31/hr loaded
- Base wage
- $49,690
- Employer payroll tax (FICA, 7.65%)
- + $3,801
- Unemployment (FUTA + SUTA, 1.5%)
- + $745
- Workers' comp (10%)
- + $4,969
- Benefits — health, retirement, leave (12%)
- + $5,963
- Total cost to employ
- $65,168
FICA is fixed by law at 7.65%. Workers’ comp is high for refuse/trucking and swings with your safety record (experience mod) — a clean crew runs ~8%, claims push it past 14%. For reference, BLS ECEC (Dec 2025) puts benefits + taxes at ~43% on top of wages across all private industry; small haulers usually land lower unless they offer rich health/retirement.
Where the extra cost comes from
- Payroll tax (FICA) — 7.65%, fixed. Your half of Social Security and Medicare on every dollar of wages. Non-negotiable.
- Workers’ comp — the hauler killer. Trash collection is one of the highest-rated job classes there is. Start around 10% of payroll, drop toward 8% with a clean record and a good experience mod, and watch it climb past 14% after claims.
- Unemployment (FUTA + SUTA).Usually 1–2% of wages up to a cap; your state rate depends on your layoff history.
- Benefits.Health insurance, retirement match, paid time off, and overtime premium. The one bucket you fully control — and the easiest way to compete for good drivers without raising base pay.
Know what to pay before you hire
See current wages for every waste-industry role, then post your opening on About Trash — free.
Common questions
How much more than wages does an employee cost?+
Across all private industry, BLS data (ECEC, Dec 2025) shows benefits and payroll taxes add about 43% on top of wages — total compensation is roughly 70% wages, 30% benefits. For a small hauler the load is often 25–40%, depending on workers’ comp and what benefits you offer.
Why is workers’ comp so high for garbage trucks?+
Refuse collection and trucking are high-injury job classes, so the workers’ comp rate is among the highest of any industry. It also moves with your experience modifier (EMR) — a clean safety record can run around 8% of payroll, while claims history can push it past 14%.
What costs are fixed vs. negotiable?+
FICA (Social Security + Medicare) is fixed by law at 7.65% of wages. Unemployment (FUTA + SUTA) and workers’ comp are set by your rates and record. Health, retirement, and paid leave are up to you — which is the biggest lever a small hauler controls.
Benchmark: U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation (ECEC), December 2025 — private-industry total compensation averaged $46.15/hour, 70.1% wages and 29.9% benefits. Calculator defaults are tuned for a small hauler and are adjustable; your real costs depend on your state, carrier, and experience modifier. Not tax or legal advice.