Kentucky Employee Cost Calculator (2026)
Last updated: October 2026
Kentucky employers pay federal payroll taxes plus Kentucky unemployment insurance — 2.7% for new employers on the first $12,000.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Total annual cost
$65,106.00
1.09× salary · $5,106.00 on top of wages
Monthly cost
$5,425.50
Loaded hourly cost
$31.30
Per hour actually worked
$32.55
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $324.00 |
| Workers' comp | $150.00 |
| Total annual cost | $65,106.00 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
Kentucky employer payroll taxes at a glance
| New employer SUTA rate | 2.7%Commonly published new-employer rate under Rate Schedule A. The SCUF surcharge is suspended for 2026 (reinstates 1/1/2027). Confirm the exact rate on your KEWES rate notice. |
| Experienced employer SUTA range | 0.3% – 9% |
| SUTA taxable wage base | $12,000.00Up from $11,700 in 2025. |
| Max SUTA per employee per year | $324.00 |
| Paid family/medical leave program | No |
| State income tax on wages | Yes — employers withhold; not an employer cost |
| Source | Kentucky unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in Kentucky
Salary
$40,000.00
Total annual cost
$50,726.00
1.27× salary · SUTA $324.00
Salary
$60,000.00
Total annual cost
$72,906.00
1.22× salary · SUTA $324.00
Salary
$90,000.00
Total annual cost
$106,176.00
1.18× salary · SUTA $324.00
What's different about hiring in Kentucky
- Experienced-employer SUTA rates in Kentucky can reach 9% for businesses with a history of layoffs — retention directly lowers your tax bill.
- 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
- Kentucky 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
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- Wyoming
Tax rates are approximate — always verify with your state's revenue department.