Where do these numbers come from?
- SSA2026 Social Security wage base ($184,500)2026
- IRSPublication 15 (2026): FICA and FUTA rates2026
- EY Tax NewsState unemployment wage bases and new-employer rates for 2026updated 29 Jul 2026
- OECDTaxing Wages 2026, comparative indicatorspublished April 2026
Checked Oct 23, 2026. A $75,000 salary in California: Social Security 6.2% = $4,650 (SSA 2026 wage base $184,500), Medicare 1.45% = $1,087.50, FUTA 0.6% × $7,000 = $42 (IRS Publication 15), California UI 3.4% + 0.1% ETT on the first $7,000 = $245 (EY 2026 chart). Total $81,024.50, the figure this calculator shows. Automated tests repeat this and 20 more US checks.
How to use this calculator
- Choose the country where the person will work.
- Enter the annual gross salary in local currency.
- Optionally add benefits as a % of salary and monthly costs such as an EOR fee.
- Read the total employer cost, each line item, the monthly and hourly cost and the employee take-home pay.
- Instant answersResults update as you type.
- Private by designRuns in your browser. Nothing is sent.
- Share, print or citeCopy a link with your numbers.
2026 state unemployment tax (SUTA) for new employers: all 50 states and DC
Every US employer pays state unemployment insurance tax on each employee’s wages up to the state’s taxable wage base. Until you have a few years of claims history, the state assigns a new-employer rate. The table shows that rate including flat state surcharges billed with it, the 2026 taxable wage base, and the most you pay per employee per year. Where a state sets the new-employer rate by industry or category, we do not guess: it says varies, check your state notice (10 states), and you can type your own rate into the calculator.
| State | New-employer rate | Wage base | Max/employee | Notes and source |
|---|---|---|---|---|
| Alabama | 2.76% | $8,000 | $220.80 | 2.7% + 0.06% Employment Security Enhancement Assessment. EY Tax News |
| Alaska | Varies, check your state notice | $54,200 | — | New-employer rate varies by industry. EY Tax News |
| Arizona | 2% | $8,000 | $160.00 | EY Tax News |
| Arkansas | 2.2% | $7,000 | $154.00 | 2.0% + 0.2% administrative assessment. EY Tax News |
| California | 3.5% | $7,000 | $245.00 | 3.4% + 0.1% Employment Training Tax. EY Tax News |
| Colorado | 3.05% | $30,600 | $933.30 | 1.53% base + 0.17% support rate + 1.35% solvency surcharge (non-construction). Eddy |
| Connecticut | 1.9% | $27,000 | $513.00 | Connecticut DOL |
| Delaware | 1.2% | $14,500 | $174.00 | 1.0% + 0.2% operations and technology assessment. Delaware DOL |
| District of Columbia | 2.9% (2025, latest) | $9,000 | $261.00 | 2.7% + 0.2% administrative assessment; 2026 rate not yet in source, so the latest published year is shown. EY Tax News |
| Florida | 2.7% | $7,000 | $189.00 | EY Tax News |
| Georgia | 2.7% | $9,500 | $256.50 | 2.64% + 0.06% administrative assessment. EY Tax News |
| Hawaii | 2.41% | $64,500 | $1,554.45 | 2.4% + 0.01% employment and training assessment. EY Tax News |
| Idaho | 1% | $58,300 | $583.00 | Plus a small workforce surcharge (about 0.02%). EY Tax News |
| Illinois | 3.35% | $14,250 | $477.38 | Includes the 0.55% fund building rate. EY Tax News |
| Indiana | 2.5% | $9,500 | $237.50 | Construction rate differs. EY Tax News |
| Iowa | 1% | $20,400 | $204.00 | Construction 5.4%. EY Tax News |
| Kansas | 1.75% | $15,100 | $264.25 | Construction 5.55%. EY Tax News |
| Kentucky | 2.7% | $12,000 | $324.00 | Construction 9% to 10%. EY Tax News |
| Louisiana | Varies, check your state notice | $7,000 | — | Average rate for your industry (NAICS). EY Tax News |
| Maine | 2.54% | $12,000 | $304.80 | 2.23% + 0.14% CSSF + 0.17% UPAF. EY Tax News |
| Maryland | 2.6% | $8,500 | $221.00 | Construction rate varies. EY Tax News |
| Massachusetts | 2.933% | $15,000 | $439.95 | 2.42% + 0.056% Workforce Training Fund + COVID Recovery Assessment (18.9% of the UI rate). EY Tax News |
| Michigan | 2.7% | $9,000 | $243.00 | Construction 4.9%. EY Tax News |
| Minnesota | Varies, check your state notice | $44,000 | — | Varies by industry (1.0% to 8.9%), plus 0.1% workforce assessment and a 14% additional assessment in 2026. EY Tax News |
| Mississippi | 1.2% | $14,000 | $168.00 | Year-1 rate (1.1% in year 2, 1.2% in year 3) + 0.2% workforce surcharges. EY Tax News |
| Missouri | 2.396% | $9,000 | $215.64 | 2.376% + 0.02% automation adjustment. EY Tax News |
| Montana | Varies, check your state notice | $47,300 | — | Varies by industry (1.0% to 2.0%), plus 0.18% administrative fund tax. EY Tax News |
| Nebraska | 1.25% | $9,000 | $112.50 | Wage base is $24,000 for the highest rate category. EY Tax News |
| Nevada | 3% | $43,700 | $1,311.00 | 2.95% + 0.05% Career Enhancement Program. Nevada DETR |
| New Hampshire | 1.7% | $14,000 | $238.00 | 2.7% less a 1.0% trust fund reduction; set each quarter, so check your notice. NH Employment Security |
| New Jersey | 2.8% | $44,800 | $1,254.40 | Rate year starts 1 July; 2.6825% + 0.1% WDF + 0.0175% SWF. EY Tax News |
| New Mexico | Varies, check your state notice | $34,800 | — | 1.0% or your industry average if higher. EY Tax News |
| New York | 4.1% | $17,600 | $721.60 | 3.4% normal + 0.625% subsidiary + 0.075% Re-employment Service Fund. New York DOL |
| North Carolina | 1% | $34,200 | $342.00 | EY Tax News |
| North Dakota | Varies, check your state notice | $46,600 | — | 1.03% or 6.07% depending on category; construction 9.67%. EY Tax News |
| Ohio | 2.85% | $9,000 | $256.50 | 2.7% + 0.15% technology and customer service fee. EY Tax News |
| Oklahoma | 1.575% | $25,000 | $393.75 | 1.5% + technology reinvestment assessment (5% of the rate). EY Tax News |
| Oregon | 2.4% | $56,700 | $1,360.80 | EY Tax News |
| Pennsylvania | 3.822% | $10,000 | $382.20 | Employees also pay 0.07%. EY Tax News |
| Rhode Island | 1.21% | $30,800 | $372.68 | 1.0% + 0.21% Job Development Fund. Rhode Island DLT |
| South Carolina | 1.06% | $14,000 | $148.40 | 1.0% + 0.06% contingency surcharge. EY Tax News |
| South Dakota | 1.75% | $15,000 | $262.50 | Year-1 non-construction 1.2% + 0.55% investment fee. South Dakota DLR |
| Tennessee | Varies, check your state notice | $7,000 | — | Based on the reserve ratio of your industry sector. EY Tax News |
| Texas | 2.7% | $9,000 | $243.00 | Or your industry average if higher. EY Tax News |
| Utah | Varies, check your state notice | $50,700 | — | Varies by industry; construction 7.1%. Utah DWS |
| Vermont | 1% | $15,400 | $154.00 | Varies for certain industries. EY Tax News |
| Virginia | 2.55% | $8,000 | $204.00 | 2.5% + 0.05% administrative fee. EY Tax News |
| Washington | Varies, check your state notice | $78,200 | — | 90% of your industry average, minimum 1.0%, plus 0.03% EAF. EY Tax News |
| West Virginia | 2.7% | $9,500 | $256.50 | Construction 8.5%. EY Tax News |
| Wisconsin | 3.05% | $14,000 | $427.00 | Taxable payroll under $500,000; 3.25% above. Wisconsin DWD |
| Wyoming | Varies, check your state notice | $33,800 | — | Varies by industry. EY Tax News |
Sources: new-employer rates from EY Tax News, SUI wage bases and tax rates for 2026 (updated 29 Jul 2026) (EY), confirmed against the state agency page where linked (Connecticut DOL, Delaware DOL, Nevada DETR, NH Employment Security, New York DOL, Rhode Island DLT, South Dakota DLR, Wisconsin DWD). Taxable wage bases: EY Tax News, 2026 SUI taxable wage bases (6 Jan 2026), cross-checked with the PayState Update 2026 chart (26 Jan 2026). Federal figures: Social Security 6.2% up to $184,500 (SSA, 2026), Medicare 1.45% with no cap, and FUTA 0.6% net on the first $7,000 (IRS Publication 15, 2026). Checked 24 October 2026. Rates exclude construction rates, delinquency penalties and employee-paid shares (Alaska, New Jersey, Pennsylvania).
Worked example: a $75,000 hire in California
Social Security 6.2% × $75,000 = $4,650. Medicare 1.45% = $1,087.50. FUTA 0.6% × $7,000 = $42. California unemployment insurance 3.4% plus the 0.1% Employment Training Tax on the first $7,000 = $245. Employer taxes total $6,024.50, so the hire costs $81,024.50 a year before benefits, 8.0% on top of salary. The same salary in New York adds $721.60 of state unemployment tax (4.1% of $17,600), and in Washington the rate depends on your industry, so check your notice.
What the total includes
- Employer social security from the OECD Taxing Wages 2026 model, interpolated between 67%, 100% and 167% of each country's average wage so ceilings and reduced rates are reflected.
- Mandatory non-tax payments: compulsory pension and insurance payments that the OECD does not count as taxes, but that an employer must pay. Many cost calculators leave these out, which understates countries such as Australia and the Netherlands by 10% or more.
- Your own extras: benefits as a % of salary, and any monthly cost such as an employer-of-record fee or equipment.
Countries with mandatory non-tax payments
Employer share at the average wage, 2025 (OECD).
| Country | Scheme | Employer % of salary |
|---|---|---|
| Netherlands | mandatory occupational pension and insurance | 16.8% |
| Mexico | mandatory retirement savings and housing fund | 13.4% |
| Colombia | mandatory pension and health contributions | 12.5% |
| Australia | superannuation guarantee | 11.5% |
| Iceland | mandatory occupational pension | 11.5% |
| Israel | mandatory pension contributions | 9.5% |
| Switzerland | occupational pension (BVG) and accident insurance | 8.8% |
| Chile | mandatory pension and health contributions | 5.0% |
| Slovak Republic | mandatory payments | 4.6% |
| Poland | mandatory payments | 3.6% |
| Norway | mandatory occupational pension | 1.7% |
| Denmark | labour-market supplementary pension (ATP) and other schemes | 1.1% |
Compare countries
To see two or three countries side by side in the same currency, use the country cost comparison. For a hire through an employer of record, add the provider fee in the EOR cost calculator.
Sources: OECD Taxing Wages 2026, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
What can make the real cost higher or lower
- Contribution ceilings. Many countries stop charging some employer contributions above a salary cap, so very high salaries cost proportionally less than the headline rate.
- Mandatory extra pay. Some countries require pay on top of the monthly salary, such as the 13th-month salary in the Philippines and Brazil. Check the line items in the result to see what is included.
- Benefits and fees. Private health cover, equipment and an employer-of-record fee are not statutory, so add them in the optional fields.
- Exchange rates. Totals in US dollars use World Bank exchange rates; the local-currency figure does not move with the exchange rate.
Anything not listed in the result breakdown is not included in the total.
Employer on-costs in 14 major hiring countries
The share an employer pays on top of salary varies more than any other part of the cost of a hire. The table uses OECD Taxing Wages 2026 figures for a single worker on the national average full-time wage, the same data the calculator uses. Mandatory non-tax payments, such as Australia’s superannuation guarantee, are not part of the OECD social security figure; the calculator adds them separately and lists them in the section above.
| Country | Employer social security | Average wage (2025) | Wage + employer cost |
|---|---|---|---|
| France | 36.3% | 45,964 EUR | 62,671 EUR |
| Italy | 31.6% | 36,594 EUR | 48,150 EUR |
| Sweden | 31.4% | 557,053 SEK | 732,079 SEK |
| Spain | 30.6% | 32,678 EUR | 42,668 EUR |
| Germany | 20.9% | 66,700 EUR | 80,617 EUR |
| Poland | 16.3% | 105,738 PLN | 122,972 PLN |
| Japan | 15.7% | 5,703,038 JPY | 6,596,134 JPY |
| United Kingdom | 13.7% | 55,983 GBP | 63,630 GBP |
| Netherlands | 12.6% | 69,028 EUR | 77,729 EUR |
| Ireland | 11.2% | 60,258 EUR | 66,992 EUR |
| Mexico | 10.8% | 219,608 MXN | 243,367 MXN |
| Canada | 9.6% | 92,401 CAD | 101,269 CAD |
| United States | 8.1% | 73,520 USD | 79,466 USD |
| Australia | 6.1% | 108,674 AUD | 115,278 AUD |
Read the percentage as the starting point, not the full bill. Several countries cap contributions at a salary ceiling, so the percentage falls for senior salaries; others have reduced rates for low earners or new businesses. Type any salary into the calculator to see the exact line items at that pay level.
Hiring in the United States: what the figure covers
For a US hire, the employer’s mandatory federal payroll taxes are Social Security at 6.2% of wages up to the annual wage base, Medicare at 1.45% with no cap, and federal unemployment tax (FUTA). FUTA is 6.0% of the first $7,000 of each employee’s wages, but employers that pay state unemployment tax on time get a credit of up to 5.4%, so most pay 0.6%, or $42 a year per employee. State unemployment insurance (SUTA) rates and wage bases are set by each state: new employers get a starting rate, then a rate based on their own layoff history.
With the country set to the United States, the calculator applies these federal rates line by line and adds the state unemployment tax for the state you pick, using the 2026 new-employer rate and wage base in the state table above. If your state has already assigned you a rate, type it into the “Add benefits, your SUTA rate and other costs” panel. Workers’ compensation premiums depend on the job’s risk class and the insurer, and health insurance is usually the largest optional cost; it is not mandatory for employers with fewer than 50 full-time-equivalent employees under the Affordable Care Act.
A budgeting checklist for any hire
- Gross salary. The figure in the offer letter, annualised.
- Mandatory employer contributions. Social security, pension, health, unemployment and accident insurance where they apply. The calculator fills these in by country.
- Mandatory extra pay. Some countries require 13th or 14th month salaries or holiday pay. Check the country page before you set the salary.
- Benefits you choose. Private health cover, retirement match, meal or transport allowances.
- Hiring route. An employer of record charges a monthly fee per employee; your own entity has setup and running costs. Compare them with the EOR vs contractor vs entity tool.
- Equipment and one-off costs. Laptop, software seats, recruiting and onboarding.
Add the totals from steps 1 to 4 to get the yearly employment cost, then add 5 and 6 for the full first-year budget. Divide by 12 for a monthly figure, or by the hours actually worked in a year for an hourly cost to compare with a contractor’s rate.
Frequently asked questions
What does an employee cost in the US on top of salary?
For 2026, the employer pays Social Security of 6.2% up to $184,500, Medicare of 1.45%, FUTA of 0.6% on the first $7,000 ($42), and state unemployment tax at its rate on the state wage base. A $75,000 hire in California costs about $81,025 before benefits.
What is the SUTA rate for a new employer?
It depends on the state: for example 2.7% in Florida and Texas, 3.4% plus 0.1% ETT in California, 4.1% in New York. Some states set it by industry; the table lists all 50 states and DC with the 2026 rate and source.
Does this include benefits?
Mandatory social security and compulsory non-tax payments are included automatically. Voluntary benefits are not, but you can add them as a % of salary.
Why is Australia more expensive than its social security rate suggests?
Because the 11.5% superannuation guarantee is a compulsory payment into the employee's pension fund that the OECD records as a non-tax payment, not a social security contribution. LoadedCost adds it to the total.
What does cost per 1 unit of take-home mean?
Total statutory employer cost divided by the employee's net pay. A value of 1.60 means the employer spends 1.60 for every 1.00 the employee keeps.
Which salary range is most accurate?
Between 67% and 167% of the country's average wage, the range the OECD models directly. Outside it, the nearest rate is used and the result is flagged.
Does the total include an employer-of-record fee?
Only if you add one. EOR fees are commercial prices set by each provider, not statutory costs, so enter the monthly fee from your quote in the optional field.
What is the 1.25 to 1.4 rule for employee cost?
It is a rule of thumb that an employee's total cost is 1.25 to 1.4 times base salary once taxes, benefits and overhead are added. The mandatory part is much smaller: for a $75,000 hire in California, employer payroll taxes add about 8.0%. Health insurance, retirement matching, equipment and office costs make up most of the rest; add them in the benefits and other-cost fields.
What payroll taxes does an employer pay in 2026?
Social Security at 6.2% of wages up to $184,500, Medicare at 1.45% with no cap, federal unemployment tax (FUTA) at 0.6% of the first $7,000 after the standard credit ($42 per employee, more in credit-reduction states), and state unemployment tax (SUTA) at your assigned rate on the state wage base. The 0.9% Additional Medicare Tax is withheld from the employee only.
Do employers have to pay for workers' compensation?
Almost every state requires employers to carry workers' compensation insurance; Texas is the main exception, where coverage is optional. Premiums are priced per $100 of payroll by job class, so they are not a payroll tax; add your insurer's quote in the other-cost field.