The Real Cost of Hiring: Part-Time vs. Full-Time
When deciding between part-time and full-time employees, the sticker price of wages is just the starting point. Every hire brings employer payroll taxes, and full-time workers often require health benefits, retirement contributions, and other mandatory costs.
This calculator shows the full employer cost for each option: wages plus the 7.65% employer FICA (Social Security + Medicare), plus benefits for full-time employees. The monthly and annual totals give you a clear apples-to-apples comparison.
Part-time workers can save on benefits costs, but if your part-time headcount grows to cover the same hours as one full-timer, the cost advantage can disappear — especially when you factor in training time, coordination overhead, and turnover rates (typically higher for part-time workers).
For businesses approaching 50 full-time equivalent employees, the ACA mandate kicks in, requiring health coverage. Plan ahead to understand your cost exposure.
Frequently Asked Questions
Under the ACA, employers with 50+ full-time equivalent (FTE) employees must offer health coverage to full-time workers (30+ hrs/week). FTEs include part-time hours — 30 part-time hours equal 1 FTE. Exceeding this threshold triggers "employer shared responsibility" payments.
Yes. Part-time workers typically have higher turnover, meaning more frequent recruiting and onboarding costs. Scheduling complexity also increases with more part-timers. These soft costs aren't captured in this calculator but are real.