Pennsylvania · 2026 employer costs
How much does an employee cost in Pennsylvania?
Pennsylvania's mandatory employer payroll costs come from federal Social Security and Medicare, plus this state's own unemployment insurance rate and wage base. Below is a 2026 estimate for a $60,000 hire, and the full calculator to run your own numbers.
A $60,000 Pennsylvania employee costs about
$65,014
in mandatory employer costs alone — before any optional benefits.
- New-employer SUI: 3.82% on the first $10,000 of wages.
- Standard FUTA rate applies: 0.6% — this state is not projected to face a federal credit reduction for 2026.
- State income tax is withheld from the employee's wages, not paid directly by the employer.
Includes the 9.2% surcharge in effect for 2026; new construction employers pay 10.5924% instead. Pennsylvania is also one of the few states where employees themselves pay a small SUI withholding (0.07% for 2026) — that's a payroll deduction from the employee, not an added employer cost.
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
Includes the 9.2% surcharge in effect for 2026; new construction employers pay 10.5924% instead. Pennsylvania is also one of the few states where employees themselves pay a small SUI withholding (0.07% for 2026) — that's a payroll deduction from the employee, not an added employer cost.
Source: PA Dept. of Labor & Industry (UC-748 rate chart)
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.
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 PA payroll taxes to the highest salary it supports.
Estimated affordable salary
$77,636
per year