New York · 2026 employer costs
How much does an employee cost in New York?
New York has the highest SUI wage base of the four states here, plus a subsidiary tax add-on that most new-employer rate quotes leave out. The state avoided a 2026 FUTA credit reduction by repaying its federal loan balance ahead of the deadline.
A $60,000 New York employee costs about
$65,354
in mandatory employer costs alone — before any optional benefits.
- New-employer SUI: normal contribution of 3.4% plus a subsidiary tax, for an effective rate near 4.1%, on the first $17,600 of wages.
- Standard FUTA rate applies: 0.6% — New York repaid its federal UI loan before the November 2025 deadline and avoided the 2026 credit reduction.
- State income tax is withheld from the employee's wages, not paid directly by the employer.
New York's SUI wage base now indexes to 18% of the state average annual wage every year (it jumped from $12,800 to $17,600 for 2026 under this new formula), so expect it to keep climbing.
What you’d pay this person — before taxes or benefits.
Used only for employer-size rules. The estimate below is for one new hire.
Health insurance, 401(k) match, bonus, and more. Off by default.
2026 calculation assumptions▾
Source: SSA / IRS
Source: IRS
Source: IRS / U.S. Dept. of Labor
New employer rate combines the 3.4% normal contribution plus the subsidiary tax, for an effective ~4.1%. The wage base jumped to $17,600 for 2026 under a new law indexing it to 18% of the state average annual wage each year — expect it to keep climbing.
Source: NY Dept. of Labor (UI rate information)
This estimate assumes your business is a new employer (not yet experience-rated) for unemployment insurance purposes. An established business’s actual SUI rate may be higher or lower depending on its claims history. “Current employees” is used only to check headcount-based thresholds (paid sick leave tiers, the ACA’s 50-employee mark) — it doesn’t change the tax rates themselves.
New York requires 40 hours of paid sick leave per year for employers with under 100 employees, and 56 hours at 100+. Employers with 4 or fewer employees and under $1M in net income may provide this unpaid instead — not modeled here. Shown as a maximum possible cost — it's only actually spent if the leave is used. Already included in salary for salaried employees — not added to the cost total. Shown for planning purposes only.
Source: NY Paid Sick Leave Law (NY Labor Law)
Reverse the question
Not “what will it cost?” — what can I afford?
Enter what your business can put toward one new hire each month, all-in. We’ll work backward through NY payroll taxes to the highest salary it supports.
Estimated affordable salary
$77,321
per year