Employee Cost Calculator (2026)
Last updated: October 2026
A $60,000 salary doesn't cost $60,000. Add payroll taxes, unemployment insurance, workers' comp and benefits to see what an employee really costs your business.
Select your state to include state unemployment insurance (SUTA) in the estimate.
Total annual cost
$64,782.00
1.08× salary · $4,782.00 on top of wages
Monthly cost
$5,398.50
Loaded hourly cost
$31.15
Per hour actually worked
$32.39
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $0.00 |
| Workers' comp | $150.00 |
| Total annual cost | $64,782.00 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
How the employee cost is calculated
Social Security: employers pay 6.2% of each employee's wages, up to the 2026 wage base of $184,500.00. Wages above that cap are not taxed.
Medicare: employers pay 1.45% of all wages, with no cap. (The additional 0.9% Medicare tax on high earners is withheld from the employee only.)
FUTA (federal unemployment): 6% on the first $7,000.00 of wages, but most employers receive a 5.4% credit for paying state unemployment tax, bringing the effective rate to 0.6% — a maximum of $42 per employee per year.
SUTA (state unemployment): every state sets its own rate and taxable wage base. New employers typically pay a standard starting rate; established employers get an annual rate notice based on their layoff history.
Workers' compensation: priced per $100 of payroll and varies widely by industry — office work is cheap to insure, construction is not.
Employee cost by state
| State ↑ | New employer SUTA rate | SUTA wage base | Max SUTA per employee |
|---|---|---|---|
| Alabama | 2.7% | $8,000.00 | $216.00 |
| Alaska | 1% | $54,200.00 | $542.00 |
| Arizona | 2% | $8,000.00 | $160.00 |
| Arkansas | 2% | $7,000.00 | $140.00 |
| California | 3.4% | $7,000.00 | $238.00 |
| Colorado | 3.05% | $30,600.00 | $933.30 |
| Connecticut | 1.9% | $27,000.00 | $513.00 |
| Delaware | 1% | $14,500.00 | $145.00 |
| District of Columbia | 2.7% | $9,000.00 | $243.00 |
| Florida | 2.7% | $7,000.00 | $189.00 |
| Georgia | 2.7% | $9,500.00 | $256.50 |
| Hawaii | 2.4% | $64,500.00 | $1,548.00 |
| Idaho | 1% | $58,300.00 | $583.00 |
| Illinois | 3.35% | $14,250.00 | $477.38 |
| Indiana | 2.5% | $9,500.00 | $237.50 |
| Iowa | Varies | $20,400.00 | Varies |
| Kansas | 2.7% | $14,000.00 | $378.00 |
| Kentucky | 2.7% | $12,000.00 | $324.00 |
| Louisiana | Varies | $7,000.00 | Varies |
| Maine | 2.54% | $12,000.00 | $304.80 |
| Maryland | Varies | $8,500.00 | Varies |
| Massachusetts | 2.42% | $15,000.00 | $363.00 |
| Michigan | 2.7% | $9,000.00 | $243.00 |
| Minnesota | Varies | $44,000.00 | Varies |
| Mississippi | 1% | $14,000.00 | $140.00 |
| Missouri | 2.376% | $9,000.00 | $213.84 |
| Montana | Varies | $47,300.00 | Varies |
| Nebraska | 1.25% | $9,000.00 | $112.50 |
| Nevada | 2.95% | $43,700.00 | $1,289.15 |
| New Hampshire | 1.7% | $14,000.00 | $238.00 |
| New Jersey | 2.8% | $44,800.00 | $1,254.40 |
| New Mexico | 1% | $34,800.00 | $348.00 |
| New York | 4.1% | $17,600.00 | $721.60 |
| North Carolina | 1% | $34,200.00 | $342.00 |
| North Dakota | 1% | $46,600.00 | $466.00 |
| Ohio | 2.85% | $9,500.00 | $270.75 |
| Oklahoma | 1.5% | $25,000.00 | $375.00 |
| Oregon | 2.4% | $56,700.00 | $1,360.80 |
| Pennsylvania | 3.822% | $10,000.00 | $382.20 |
| Rhode Island | 1.21% | $30,800.00 | $372.68 |
| South Carolina | 1% | $14,000.00 | $140.00 |
| South Dakota | 1.2% | $15,000.00 | $180.00 |
| Tennessee | 2.7% | $7,000.00 | $189.00 |
| Texas | 2.7% | $9,000.00 | $243.00 |
| Utah | Varies | $50,700.00 | Varies |
| Vermont | 1% | $15,400.00 | $154.00 |
| Virginia | 2.73% | $8,000.00 | $218.40 |
| Washington | Varies | $72,800.00 | Varies |
| West Virginia | 2.7% | $9,500.00 | $256.50 |
| Wisconsin | Varies | $14,000.00 | Varies |
| Wyoming | Varies | $33,800.00 | Varies |
Worked examples
Typical scenario: SUTA 2.7% on a $9,000 wage base, office workers' comp, $500/month health insurance, 3% retirement match.
Salary
$40,000.00
Total annual cost
$50,645.00
1.27× salary
Salary
$60,000.00
Total annual cost
$72,825.00
1.21× salary
Salary
$90,000.00
Total annual cost
$106,095.00
1.18× salary
Hiring outside the US?
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Sources & methodology
- SSA — Social Security wage base
- IRS Topic 751 — Social Security and Medicare rates
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Tax rates are approximate — always verify with your state's revenue department.