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🗽 New York Employer Payroll Cost Calculator 2026

Calculate the true cost of hiring an employee in New York — beyond salary. All mandatory employer taxes included. Independent and vendor-neutral.

✅ Independent tool — not affiliated with any payroll company. We show the real numbers so you can compare providers on your own terms.

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ℹ️ New York Employer Payroll Taxes 2026

New York employers pay SUI (4.025% on $12,300 = $495 max) plus Re-employment Services Fund (0.075% on $12,300 = $9.23/employee). NYC-area employers also pay MCTMT (Metropolitan Commuter Transportation Mobility Tax) up to 0.34% on all payroll — increases cost for employers in NYC, Westchester, Nassau, and surrounding counties. Combined burden makes NY one of the most expensive states to hire.

🗺️ Employer Tax Burden Comparison — All 10 States

Mandatory FUTA + SUI cost per employee per year at new employer rates (excludes benefits):

StateFUTA RateSUI Rate / BaseMin Tax/Employee
California1.8%3.400% on $7,000$364
Texas0.6%2.700% on $9,000$285
New York0.6%4.025% on $12,300$537
Florida0.6%2.700% on $7,000$231
Illinois0.6%3.500% on $13,590$518
Pennsylvania0.6%3.689% on $10,000$411
Ohio0.6%2.700% on $9,000$285
Georgia0.6%2.700% on $9,500$298
North Carolina0.6%1.000% on $31,400$356
New Jersey0.6%2.817% on $42,300$1234

Highlighted row = current state. FUTA shown at state effective rate (may vary due to credit reductions). Actual costs vary by experience rating.

❓ Frequently Asked Questions — New York Employer Payroll Taxes 2026

How much does it cost to hire an employee in New York in 2026?

In New York, employers typically pay 20-30% above base salary in total employment costs. On a $75,000 salary, expect $88,000-$97,000 in total annual cost including employer FICA (7.65%), FUTA (0.6% on $7,000), NY SUI (4.025% on $12,300), health insurance, and 401(k) match.

What payroll taxes do New York employers pay?

New York employers are responsible for: Employer Social Security (6.2% on wages up to $184,500), Employer Medicare (1.45% on all wages), FUTA (0.6% on first $7,000 per employee), and NY SUI (4.025% on first $12,300 per employee). New York employers pay SUI (4.025% on $12,300 = $495 max) plus Re-employment Services Fund (0.075% on $12,300 = $9.23/employee). NYC-area employers also pay MCTMT (Metropolitan Commuter Transportation Mobility Tax) up to 0.34% on all payroll — increases cost for employers in NYC, Westchester, Nassau, and surrounding counties. Combined burden makes NY one of the most expensive states to hire.

Is the NY SUI rate fixed for all employers?

No. The 4.025% rate shown is the NY new employer rate for 2026. After 1-3 years of employment history, your rate is recalculated based on your actual layoff/claims experience. Employers with low turnover often get rates below the new employer rate; those with high turnover pay more.

What is the difference between FUTA and SUTA?

FUTA (Federal Unemployment Tax Act) is a federal tax of 0.6% on the first $7,000 per employee annually (max $42/employee). SUTA (State Unemployment Tax Act) is NY's state equivalent — 4.025% on the first $12,300 (max $495/employee at new employer rate). Both fund unemployment insurance programs.

Does New York have any employer-paid disability or family leave insurance?

New York employers pay SUI (4.025% on $12,300 = $495 max) plus Re-employment Services Fund (0.075% on $12,300 = $9.23/employee). NYC-area employers also pay MCTMT (Metropolitan Commuter Transportation Mobility Tax) up to 0.34% on all payroll — increases cost for employers in NYC, Westchester, Nassau, and surrounding counties. Combined burden makes NY one of the most expensive states to hire. Use this calculator to compare total cost across all 10 states before deciding where to hire.

🗺️ Employer Cost Calculators — Other States

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⚠️ AI Disclosure: This tool was built by an autonomous AI agent. Results are estimates for informational purposes only — not tax or financial advice. Consult a licensed tax professional.