New York · 2026 employer costs
The cost of an employee in New York
At a $75,000 salary, the fully-burdened cost of an employee in New York is about $81,632, the 43rd-lowest of 51 — above Montana ($81,625) and Idaho ($81,494), below Minnesota ($81,657) and District of Columbia ($81,734).
New York's 2026 state unemployment (SUI) tax applies to the first $17,600 of each employee's wages, at a 4.10% new-employer rate. Experienced employers pay 1.70%–9.50% based on their layoff history. Beyond SUI, New York employers also deal with Metropolitan Commuter Transportation Mobility Tax (MCTMT) and Disability Benefits Law (DBL). Employee-funded Paid Family Leave (PFL) is excluded below — it is withheld from the worker, not an employer cost.
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How the $6,632 on top of salary breaks down
- Social Security70%
- Medicare16%
- FUTA1%
- State SUI11%
- Workers' comp2%
| 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/NY) | 4.10% up to $17,600 | $722 |
| Workers' compensation (est.)est. | ~0.17% (office/clerical est.) | $131 |
| Total annual cost | $81,632 |
$75,000 annualized wages · 2,080 paid hours · New York · 1 in role · 1 total employer headcount · tax year 2026.
Health $0/year · retirement 0% · other benefits 0% · payroll/PEO fees $0/year.
- Metropolitan Commuter Transportation Mobility Tax (MCTMT): Per quarter across the whole MCTD; below threshold = no MCTMT that quarter. Rates effective 2025-07-01, continuing 2026. Tiered by quarterly payroll.
- Disability Benefits Law (DBL): Statutory DBL benefit is modest (50% AWW, $170/wk cap). Employer cost is the insurance premium minus the optional employee contribution. Treated as small/optional employer cost.
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 York employer payroll taxes (2026)
- State income tax on wages
- Yes
- State unemployment (SUI) wage base
- $17,600
- SUI new-employer rate
- 4.10%
- SUI rate range (experienced)
- 1.70% – 9.50%
- FUTA (federal unemployment)
- 0.60% on first $7,000Standard 0.6% net rate (no projected credit reduction).
- Metropolitan Commuter Transportation Mobility Tax (MCTMT)
- see notePer quarter across the whole MCTD; below threshold = no MCTMT that quarter. Rates effective 2025-07-01, continuing 2026. Tiered by quarterly payroll.
- Disability Benefits Law (DBL)
- see noteStatutory DBL benefit is modest (50% AWW, $170/wk cap). Employer cost is the insurance premium minus the optional employee contribution. Treated as small/optional employer cost.
- Workers' comp (office class, est.)
- ~$0.1–$0.25 / $100Estimate — set by your carrier and experience rating.
Excluded (employee-paid, not an employer cost): Paid Family Leave (PFL).
2026 tax year · each New York figure carries a primary and an independent source (see sources) · last verified June 2026.
Worked examples
Fully-burdened employer cost in New York, 2026 rates:
| Salary | Added | Total cost | Burden |
|---|---|---|---|
| $45,000 | $4,285 | $49,285 | +9.5% |
| $75,000 | $6,632 | $81,632 | +8.8% |
| $120,000 | $10,154 | $130,154 | +8.5% |
Includes Social Security (6.20% to $184,500), Medicare, FUTA, New York SUI at the new-employer rate (4.10%), and an office workers' comp estimate. Excludes optional benefits.
New York employer cost FAQ
How much does it cost to employ someone in New York?
Beyond salary, a New York employer pays Social Security and Medicare (7.65% combined), FUTA, and New York state unemployment on the first $17,600 of wages. For a $75,000 salary that totals about $81,632 (+8.8%) before optional benefits.
What is the New York SUI / SUTA rate for 2026?
The 2026 New York taxable wage base is $17,600. New employers pay 4.10%; experienced employers range 1.70%–9.50% based on their claims history.
What employer payroll costs are specific to New York?
On top of federal FICA/FUTA and SUI, New York employers deal with Metropolitan Commuter Transportation Mobility Tax (MCTMT) and Disability Benefits Law (DBL).
How much does an employer pay for payroll tax?
For a $75,000 salary in New York, an employer pays about $6,632 in payroll taxes and workers' comp on top of wages — roughly 8.8% — for a fully-burdened cost near $81,632. The New York SUI rate is the main variable.
How much does a $20 an hour employee cost an employer?
A $20/hour employee (about $41,600 a year) in New York costs an employer roughly $45,619 fully burdened — about 9.7% over wages — once Social Security, Medicare, FUTA, New York 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.