The True Cost of a US Hire vs an Offshore Professional, by Role
J. DubanUpdated October 16, 2026 · 7 min
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When owners compare a US hire with an offshore one, they usually compare salaries. That understates the US side by a long way. Employers pay payroll taxes, benefits, equipment costs and recruiting on top of wages, and the job sits empty while you hire.
How much does an employee really cost on top of salary?
On average, benefits make up 29.9% of what US private employers spend on a worker. The U.S. Bureau of Labor Statistics puts total compensation for a private-sector worker at $46.15 an hour in December 2025: $32.36 in wages and $13.79 in benefits. Put another way, benefits add about 42.6% on top of wages. For a small business, the extras that bite hardest are:
- Employer payroll taxes: 7.65% for Social Security and Medicare, plus federal and state unemployment tax.
- Health insurance: the average employer share of single coverage was about $7,885 a year in 2025.
- Recruiting: a non-executive hire costs about $5,475 in direct recruiting spend (SHRM benchmark).
- The empty seat: weeks of lost output while you advertise, interview and onboard.
What does a US hire cost per month, by role?
Typical monthly cost = national average (mean) wage, plus 42.6% for benefits and payroll taxes (the BLS private-industry average), ÷ 12. Recruiting, office space and equipment are not included, so the real figure is higher.
| Role | Average annual wage | Typical monthly cost |
|---|---|---|
| Executive assistant | $79,140 | about $9,400 |
| Staff accountant | $94,750 | about $11,250 |
| Office manager | $73,490 | about $8,750 |
| Payroll specialist | $59,630 | about $7,100 |
| Bookkeeper / AP-AR clerk | $53,560 | about $6,350 |
| Administrative assistant | $49,350 | about $5,850 |
| Customer service representative | $46,590 | about $5,550 |
| Operations assistant | $46,420 | about $5,500 |
| Data entry specialist | $43,310 | about $5,150 |
| Appointment setter | $37,370 | about $4,450 |
Worked example, bookkeeper: $53,560 a year in wages, plus about $22,817 (42.6%) in benefits and payroll taxes, comes to $76,377 a year, or roughly $6,350 a month.
How does a full-time offshore professional compare?
A full-time offshore professional through a managed provider typically costs about $1,900 to $3,000+ a month all-in, which usually includes their salary, benefits, equipment, HR and payroll. For the roles above, that's commonly 50% to 70%+ below the typical US monthly cost, depending on the role and the provider.
At StaffRight, full-time roles start at $1,900 a month all-in. For a bookkeeper, that's roughly $4,250 a month below the typical US cost, before you count recruiting.
What costs do people forget on both sides?
On the US side: recruiting, the empty-seat period, overtime, paid time off, retirement match, equipment, software seats and office space.
On the offshore side: the time it takes to onboard someone well, any setup or placement fees, minimum terms, and the cost of starting over if the provider's hire doesn't work out. A free replacement guarantee matters more than a slightly lower monthly price.
When is a US hire the better choice?
Be honest with yourself here. A local hire makes more sense when the role needs to be physically on site, when the work requires a US license (some accounting, legal and real estate tasks do), or when the job depends on deep local relationships. Offshore works best for full-time back-office roles: admin, bookkeeping, operations, sales support and coordination.
FAQ
What is the average cost of hiring a new employee?
Direct recruiting spend for a non-executive US hire averages about $5,475 (SHRM). That's before onboarding time and the cost of the empty seat.
How much extra does a US employee cost beyond salary?
On average, about 42.6% on top of wages for US private employers (BLS, December 2025). That covers paid leave, bonuses, insurance, retirement contributions and payroll taxes. Smaller employers tend to spend less: about 35% for businesses with 1 to 99 workers.
Is offshore staffing cheaper than hiring in-house?
For full-time back-office roles, usually yes, by a wide margin. The bigger question is quality and retention, so compare how candidates are vetted and what happens if someone leaves.
The cost calculator runs these numbers for your role.
Sources
- U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, December 2025 (released March 20, 2026) (opens in a new tab) · bls.gov (PDF)
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025 national estimates (mean wages) (opens in a new tab) · bls.gov
- IRS Publication 15 (2026) (opens in a new tab) · irs.gov
- IRS Topic 759, FUTA (opens in a new tab) · irs.gov
- KFF 2025 Employer Health Benefits Survey (opens in a new tab) · kff.org
- SHRM cost-per-hire benchmark (via InterviewCost) (opens in a new tab) · interviewcost.com
