California Employee Cost Calculator (2026)
Last updated: October 2026
California employers pay federal payroll taxes plus California unemployment insurance — 3.4% for new employers on the first $7,000.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Total annual cost
$65,125.00
1.09× salary · $5,125.00 on top of wages
Monthly cost
$5,427.08
Loaded hourly cost
$31.31
Per hour actually worked
$32.56
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $147.00 |
| State unemployment (SUTA) | $238.00 |
| Workers' comp | $150.00 |
| Total annual cost | $65,125.00 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
California employer payroll taxes at a glance
| New employer SUTA rate | 3.4%Schedule F+ (2025 Schedule F plus 15% emergency surcharge); a separate 0.1% Employment Training Tax applies on the same $7,000 wage base. |
| Experienced employer SUTA range | 1.5% – 6.2% |
| SUTA taxable wage base | $7,000.00 |
| Max SUTA per employee per year | $238.00 |
| Paid family/medical leave program | Yes — employee-funded or rate varies; see source |
| State income tax on wages | Yes — employers withhold; not an employer cost |
| State minimum wage | $16.90/hour |
| FUTA credit reduction | 1.5% |
| Source | California unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in California
Salary
$40,000.00
Total annual cost
$50,745.00
1.27× salary · SUTA $238.00
Salary
$60,000.00
Total annual cost
$72,925.00
1.22× salary · SUTA $238.00
Salary
$90,000.00
Total annual cost
$106,195.00
1.18× salary · SUTA $238.00
What's different about hiring in California
- California's SUTA wage base is low ($7,000.00), so unemployment tax is mostly paid in the first months of the year.
- California has a paid family and medical leave program — check whether employer contributions apply to your business size.
- California is a FUTA credit reduction state for 2026, adding 1.5% to federal unemployment tax.
- Hiring remotely in another state? You generally owe SUTA in the state where the employee works — compare rates in neighboring states below.
Compare neighboring states
Hiring outside the US?
Compare the cost of an international contractor or EOR employee before you commit to a US hire.
See how Deel worksPaying vendors and contractors?
Automate accounts payable and payments so contractor costs stay predictable.
See how BILL worksFrequently asked questions
Sources & methodology
- California unemployment insurance agency
- SSA — Social Security wage base
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Employee cost calculators for other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
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- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Tax rates are approximate — always verify with your state's revenue department.