Employee True Cost Calculator for Cleaning Service

The cleaning industry has one of the highest employee turnover rates of any sector — averaging 200% or more annually. That means if you have 10 cleaning employees, you may need to hire, train, and onboard 20 replacements over the course of a year. Understanding the true cost of a cleaning employee goes far beyond the hourly wage and must account for this constant churn. A cleaner earning $15/hour doesn't cost $15/hour — the fully loaded cost includes employer FICA (7.65%), federal and state unemployment taxes (FUTA/SUTA), workers' compensation insurance (2–5% for cleaning services), and any benefits or bonuses you offer. That $15/hour becomes $17.50–$19/hour before you account for training time, supervision, and turnover costs. Each time a cleaning employee leaves and you hire a replacement, you incur recruiting costs ($200–$500), training time (8–20 hours at reduced productivity), uniform and supply setup ($100–$200), and the risk of lost clients if quality drops during the transition. At 200% turnover, these costs add up to $3,000–$5,000 per position per year — a hidden expense that many cleaning business owners fail to include in their pricing. The employee vs. subcontractor decision is also critical in the cleaning industry. Using 1099 subcontractors avoids payroll tax obligations and benefits costs, but the IRS has strict criteria for contractor classification in cleaning businesses. Misclassification penalties are severe and increasingly enforced. This calculator reveals the full cost picture so you can price your cleaning services accurately and make informed hiring decisions.