What does a paid intern cost?
The hourly wage is only part of it. Here are the cost components to budget for when you hire a paid intern yourself, with the public sources behind the rates.
1. The wage
The federal minimum wage is $7.25 per hour. Many states set a higher rate, and employers must comply with both.1 At for-profit employers, interns who are employees under the Fair Labor Standards Act are owed minimum wage and overtime.2
2. Employer payroll taxes
- Social Security: 6.2% of wages, employer share.3
- Medicare: 1.45% of wages, employer share.3
- Federal unemployment (FUTA): 6.0% on the first $7,000 paid to each employee in a year. With the maximum 5.4% state credit, the rate after credit is 0.6%.4
- State unemployment: set by each state, with its own rates and wage base.5
IRS Publication 15 covers withholding, deposits, and filing for employers.6
3. Workers' comp
Workers' comp is set at the state level. Your premium depends on your state, your carrier, and the kind of work the intern does, so get a quote for the specific role. If you host through InternCrew, InternCrew's workers' comp covers interns on our payroll.
4. Admin time
Someone has to recruit and screen, collect hiring forms like Form I-9 and tax withholding forms, run payroll, and track youth labor rules if the intern is under 18. That time is a real cost even when it doesn't show up on an invoice.
The InternCrew option
As the employer of record, InternCrew runs payroll and payroll taxes and carries HR, compliance, liability, and workers' comp for every student we place. Pricing is tailored to the role and the hours you need, and it stays simple and predictable. Tell us about the job and we'll build your quote.
Sources
- U.S. Department of Labor, Minimum Wage.
- U.S. Department of Labor, Fact Sheet #71: Internship Programs Under the Fair Labor Standards Act.
- IRS Topic No. 751, Social Security and Medicare Withholding Rates.
- IRS Topic No. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.
- U.S. Department of Labor, Employment and Training Administration, State Unemployment Insurance Law Information.
- IRS Publication 15 (Circular E), Employer's Tax Guide.
Intern cost questions
What is the minimum wage for a paid intern?
The federal minimum wage is $7.25 per hour. Many states set a higher minimum, and employers must follow both. Check your state's rate.
What payroll taxes does an employer pay on an intern?
Generally the employer's share of Social Security (6.2%) and Medicare (1.45%), federal unemployment tax (6.0% on the first $7,000 of wages, often 0.6% after the state credit), and state unemployment tax, which varies by state. See IRS Publication 15 for the details that apply to you.
Do I need workers' comp for an intern?
Workers' comp rules are set by each state, and paid interns are usually covered like other employees. Your premium depends on your state and the kind of work, so ask your carrier. With InternCrew, you don't buy a policy for the intern: InternCrew's workers' comp covers interns on our payroll.
Can interns be unpaid?
At for-profit employers, only if the intern is not an employee under the "primary beneficiary test" described by the U.S. Department of Labor. Every InternCrew placement is real, paid W-2 work.
How much does InternCrew cost?
Pricing is tailored to the role and the hours you need, and it stays simple and predictable. Payroll, HR, and workers' comp are already handled. Tell us about the job and we'll build your quote.
Get a quote for your role.
Tell us about the job and the hours. We'll build a simple, predictable quote.