California · 2026 employer costs
The cost of an employee in California
At a $75,000 salary, the fully-burdened employer cost in California is $81,296 (+8.4%). That is higher than Florida ($81,045) and Texas ($81,079), but lower than New York ($81,632) and Washington ($81,946).
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How the $6,296 on top of salary breaks down
- Social Security74%
- Medicare17%
- FUTA2%
- State SUI4%
- ETT0%
- Workers' comp3%
| Base salary | — | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA (incl. credit reduction) | 1.80% on first $7,000 | $126 |
| State unemployment (SUI/CA) | 3.40% up to $7,000 | $238 |
| Employment Training Tax (ETT) | 0.10% up to $7,000 | $7 |
| Workers' compensation (est.)est. | ~0.25% (office/clerical est.) | $188 |
| Total cost | $81,296 |
Estimate for budgeting, not tax advice. SUI uses the new-employer rate; workers' comp is an adjustable office-class estimate. See methodology.
California employer payroll taxes (2026)
- State income tax on wages
- Yes
- State unemployment (SUI) wage base
- $7,000
- SUI new-employer rate
- 3.40%
- SUI rate range (experienced)
- 1.50% – 6.20%
- FUTA (federal unemployment)
- 1.80% on first $7,000
- Employment Training Tax (ETT)
- 0.10%
- Workers' comp (office class, est.)
- ~$0.2–$0.3 / $100
California adds a 1.20% FUTA credit reduction (2025 final).
Employer-paid. Shows 0.0% for employers with a negative UI reserve account.
Estimate — set by your carrier and experience rating.
Excluded (employee-paid, not an employer cost): State Disability Insurance (SDI).
Worked examples
Fully-burdened employer cost in California, 2026 rates:
| Salary | Added | Total cost | Burden |
|---|---|---|---|
| $45,000 | $3,926 | $48,926 | +8.7% |
| $75,000 | $6,296 | $81,296 | +8.4% |
| $120,000 | $9,851 | $129,851 | +8.2% |
Includes Social Security (6.20% to $184,500), Medicare, FUTA, California SUI at the new-employer rate (3.40%), and an office workers' comp estimate. Excludes optional benefits.
California employer cost FAQ
How much does it cost to employ someone in California?
Beyond salary, a California employer pays Social Security and Medicare (7.65% combined), FUTA, and California state unemployment on the first $7,000 of wages, plus a 1.20% FUTA credit reduction. For a $75,000 salary that totals about $81,296 (+8.4%) before benefits.
What is the California SUI / SUTA rate for 2026?
The 2026 taxable wage base is $7,000. New employers pay 3.40%; experienced employers range 1.50%–6.20% based on their claims history.
Compare with other states
Or read how the burden stack works in our labor burden rate guide, compare 1099 vs W2 employer costs, and see every figure sourced in our methodology.