Costs
What is the true cost of a W-2 electrician’s helper?
Short answer: a W-2 electrician’s helper paid $21.19 an hour — the BLS May 2025 mean of $44,080, expressed over 2,080 hours — costs $44,075.20 in wages, plus $3,371.75 of employer FICA and $42 of net FUTA. In the labeled example below, state unemployment, workers’ comp, and payroll software bring the true cost to $49,741.21, or $23.91 per paid hour, before overtime or benefits.
Key takeaways
- True cost means wages plus employer taxes, unemployment insurance, workers’ comp, and payroll costs — not the hourly wage alone.
- The BLS OEWS May 2025 national table lists a May 2025 annual mean of $44,080 for electricians’ helpers. Use your local market for the actual offer.
- Paying the same person as a 1099 contractor does not automatically remove these costs and can create tax and wage-and-hour problems if the helper is really an employee.
On this page
Try these figures Opens the calculator at $21.19 an hour, 40 hours, and the electrical trade. Add your state for official unemployment figures.
Open the calculator with these figuresBuild the true-cost stack
The wage is the floor, not the total. Employer Social Security (6.2%) and Medicare (1.45%) apply to a W-2 helper in every state (IRS Publication 15, IRS Topic 751). FUTA adds $42 a year for most employers (IRS Topic 759 (Form 940/FUTA)). State unemployment tax uses that state’s wage base and your assigned rate (DOL state unemployment insurance laws). Workers’ comp, where required, is usually a rate per $100 of payroll in an electrical classification. Payroll software and any benefits or gear sit on top.
This example starts from official national pay data, not a made-up wage. The BLS May 2025 annual mean for helpers—electricians is $44,080. As an hourly rate over 2,080 hours, that is $21.19, rounded to the cent. The table uses $21.19 × 2,080 = $44,075.20 so the arithmetic stays exact. The official annual mean is $4.80 higher.
Worked example
Federal lines are real 2026 figures. State unemployment and workers’ comp are hypothetical (2.7% on a $10,000 base, and $3.00 per $100 of payroll) and should be replaced with your notice and quote. For a Texas-specific electrician hire, see cost to hire an electrician in Texas.
| Line (one year, 2,080 hours) | Amount |
|---|---|
| Wages at $21.19/hour (from the BLS $44,080 annual mean, rounded) | $44,075.20 |
| Employer Social Security, 6.2% | $2,732.66 |
| Employer Medicare, 1.45% | $639.09 |
| FUTA, net 0.6% on first $7,000 | $42.00 |
| State unemployment (hypothetical 2.7% on a $10,000 base) | $270.00 |
| Workers’ comp (hypothetical $3.00 per $100 of payroll) | $1,322.26 |
| Payroll software (Gusto Simple public price, 1 person) | $660.00 |
| Estimated true cost | $49,741.21 |
| Per paid hour | $23.91 |
Paid hours are not billable hours
The $23.91 figure is per paid hour. Drive time, material runs, training, and weather cut the hours you can bill. If 1,600 of the 2,080 paid hours are billable, the same $49,741.21 becomes about $31.09 per billable hour. That is the number to compare with what you can charge or with the extra jobs the helper lets you finish. Our can I afford a helper? page walks through that break-even test.
The 1099 comparison, carefully
The calculator can show the same hourly rate with employer payroll taxes removed. That is a math toggle, not legal advice. If the helper is an employee under the IRS: independent contractor or employee? common-law test, or under the DOL economic-reality test for wage-and-hour purposes, labeling the person a contractor does not make the true cost go away — it can add penalties on top. Read 1099 vs W-2 before you choose a form.
Compare W-2 true cost in your state Keep $21.19 and the electrical trade, then select the state where the helper will work.
Open the calculator with these figuresFrequently asked questions
What is the true cost of a W-2 electrician's helper?
Starting from the BLS May 2025 annual mean wage of $44,080 for electricians' helpers, rounded to $21.19 an hour over 2,080 hours, wages are $44,075.20. Employer FICA is $3,371.75 and net FUTA is $42. With hypothetical state unemployment of $270, hypothetical workers' comp of $1,322.26, and $660 of payroll software, the example true cost is $49,741.21, or $23.91 per paid hour.
Is it cheaper to pay an electrician's helper as a 1099 contractor?
A 1099 form does not decide the worker's status. If the helper works your hours, on your jobs, with your tools, the IRS common-law test usually points to employee status. Treating that person as a contractor to avoid employer taxes is risky. The calculator's 1099 view only removes employer payroll taxes from the math; it is not a classification decision.
Does workers' comp apply to a W-2 electrician's helper?
In most states, yes, once you have an employee, but the exact rule is set by the state. Premiums are usually priced per $100 of payroll in an electrical class, often NCCI class 5190 for wiring within buildings. Get a quote in the state where the work is done.
Federal figures were checked against 2026 IRS Publication 15 and the linked official pages in November 2026. Rows marked hypothetical are examples only. State rules and rates vary; confirm with your state agencies, an insurance agent, and your accountant before you hire.