New Jersey · 2026 employer costs
The cost of an employee in New Jersey
At a $75,000 salary, the fully-burdened cost of an employee in New Jersey is about $82,370, the 50th-lowest of 51 — above Nevada ($82,286) and Oregon ($82,260), below Hawaii ($82,491).
New Jersey's 2026 state unemployment (SUI) tax applies to the first $44,800 of each employee's wages, at a 2.68% new-employer rate. Experienced employers pay 0.50%–5.80% based on their layoff history. Beyond SUI, New Jersey employers also deal with Disability Insurance (DI) — employer share and Workforce Development / Supplemental Workforce Fund (WF/SWF) — employer share. Workers' compensation runs through a competitive state fund alongside private carriers. Employee-funded Unemployment Insurance (UI) — employee share, Temporary Disability Insurance (TDI) — employee share, and Family Leave Insurance (FLI) — employee share are excluded below — they are withheld from the worker, not an employer cost.
New Jersey SUI and FUTA quick rates
2026 employer-side planning defaults, before experience-rating adjustments.
- Default SUI rate
- 2.68%
- New-employer rate; use your notice rate if available.
- SUI taxable wage base
- $44,800
- Maximum wages subject to New Jersey SUI per employee.
- New-employer SUI maximum
- $1,202
- Taxable wage base × the new-employer rate; experience rates vary.
- Net FUTA maximum
- $42
- Assumes the full standard credit after timely state UI payment: 0.60% on the first $7,000.
Review the federal FUTA sources and New Jersey rate sources.
New Jersey employer payroll tax calculator
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How the $7,370 on top of salary breaks down
- Social Security63%
- Medicare15%
- FUTA1%
- State SUI16%
- Disability Insurance (DI) — employer share3%
- SWF1%
- Workers' comp2%
| Cost item | Rate or assumption | annual amount |
|---|---|---|
| Base wages | Annual rate basis | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA | 0.60% on first $7,000 | $42 |
| State unemployment (SUI/NJ) | 2.68% up to $44,800 | $1,202 |
| Disability Insurance (DI) — employer share | 0.50% up to $44,800 | $224 |
| Workforce Development / Supplemental Workforce Fund (WF/SWF) — employer share | 0.12% up to $44,800 | $53 |
| Workers' compensation (est.)est. | ~0.15% (office/clerical est.) | $113 |
| Total annual cost | $82,370 |
$75,000 annualized wages · 2,080 paid hours · New Jersey · 1 in role · 1 total employer headcount · tax year 2026.
Health $0/year · retirement 0% · other benefits 0% · payroll/PEO fees $0/year.
Employer-paid costs only — employee withholdings (state income tax, SDI, employee-funded leave) are excluded; these are costs on top of wages, not deductions. Estimate for budgeting, not tax advice. Defaults use the new-employer SUI rate and an office-class workers'-comp estimate. See methodology.
New Jersey employer payroll taxes (2026)
- State income tax on wages
- Yes
- State unemployment (SUI) wage base
- $44,800
- SUI new-employer rate
- 2.68%
- SUI rate range (experienced)
- 0.50% – 5.80%
- FUTA (federal unemployment)
- 0.60% on first $7,000Standard 0.6% net rate (no projected credit reduction).
- Disability Insurance (DI) — employer share
- 0.50%New-employer DI rate 0.5% on $44,800 (experience-rated employers range 0.10%-0.75%). Employer-paid portion of NJ Temporary Disability; the employee TDI share is separate and excluded.
- Workforce Development / Supplemental Workforce Fund (WF/SWF) — employer share
- 0.12%Constant 0.1175% employer charge on the UI base.
- Workers' comp (office class, est.)
- ~$0.12–$0.18 / $100Estimate — set by your carrier and experience rating.
Excluded (employee-paid, not an employer cost): Unemployment Insurance (UI) — employee share, Temporary Disability Insurance (TDI) — employee share, Family Leave Insurance (FLI) — employee share.
2026 tax year · each New Jersey figure carries a primary and an independent source (see sources) · last verified June 2026.
Worked examples
Default employer-cost estimates in New Jersey, using 2026 rates:
| Salary | Added | Total cost | Burden |
|---|---|---|---|
| $45,000 | $5,030 | $50,030 | +11.2% |
| $75,000 | $7,370 | $82,370 | +9.8% |
| $120,000 | $10,880 | $130,880 | +9.1% |
Hourly wage examples
Assumes 40 hours/week for 52 paid weeks.
| Base rate | Burden / hr | Loaded / hr | Burden |
|---|---|---|---|
| $20.00 | $2.24 | $22.24 | +11.2% |
| $40.00 | $3.85 | $43.85 | +9.6% |
Both tables include Social Security (6.20% to $184,500), Medicare, net FUTA, New Jersey SUI at the new-employer rate (2.68%), automatically modeled state employer charges, and an office workers'-comp estimate. They assume a total employer headcount of one and exclude optional benefits.
New Jersey employer cost FAQ
How much does it cost to employ someone in New Jersey?
Beyond salary, a New Jersey employer pays Social Security and Medicare (7.65% combined), FUTA, and New Jersey state unemployment on the first $44,800 of wages. For a $75,000 salary that totals about $82,370 (+9.8%) before optional benefits.
What is the New Jersey SUI / SUTA rate for 2026?
The 2026 New Jersey taxable wage base is $44,800. New employers pay 2.68%; experienced employers range 0.50%–5.80% based on their claims history.
What employer payroll costs are specific to New Jersey?
On top of federal FICA/FUTA and SUI, New Jersey employers deal with Disability Insurance (DI) — employer share and Workforce Development / Supplemental Workforce Fund (WF/SWF) — employer share.
How much is employer payroll tax in NJ?
New Jersey employers pay federal Social Security (6.2%) and Medicare (1.45%), FUTA (0.6% on the first $7,000), and New Jersey state unemployment (SUI) at a 2.68% new-employer rate on the first $44,800, plus Disability Insurance (DI) and Workforce Development / Supplemental Workforce Fund (WF/SWF). Workers' compensation is on top. Employee-funded Unemployment Insurance (UI) — employee share, Temporary Disability Insurance (TDI) — employee share, and Family Leave Insurance (FLI) — employee share are withheld from workers, not paid by the employer.
How much does a $20 an hour employee cost an employer?
A $20/hour employee (about $41,600 a year) in New Jersey costs an employer roughly $46,260 fully burdened — about 11.2% over wages — once Social Security, Medicare, FUTA, New Jersey SUI and workers' comp are added.
States with a similar cost of employment
Read how the burden stack works in our labor burden rate guide, compare 1099 vs W-2 employer costs, and see every figure sourced in our methodology.