District of Columbia · 2026 and 2027
District of Columbia employer payroll taxes and employee cost: 2.7% SUTA on $9,000
In District of Columbia, a $50,000 employee costs a new employer about $62,749 a year in 2026: 25.5% on top of pay for payroll taxes, unemployment insurance, state leave premiums, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in District of Columbia
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a District of Columbia employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying District of Columbia unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- District of Columbia unemployment insurance (SUTA)
2.7% of $9,000
New employers pay 2.7% on the first $9,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- Universal Paid Leave tax (employer-paid)
0.75% from 1+ employees
Every private employer pays 0.75% of each covered employee’s wages; nothing is deducted from workers.
per DC Department of Employment Services, Office of Paid Family Leave, as of Jan 1, 2026; per DC Department of Employment Services, Office of Paid Family Leave, as of Jan 1, 2026
- Paid sick leave
24 hours / 40 hours / 56 hours a year
Earned by employer size: 1 hour per 87 hours up to 3 days (under 25 employees), 1 per 43 up to 5 days (25–99), 1 per 37 up to 7 days (100 or more). The hours are paid but not worked, so they raise the cost per hour worked.
per DC Department of Employment Services, as of Feb 22, 2014
- Workers' compensation
$0.73 per $100 of payroll
Index rate for a standard mix of job classes: rank 43 of 51 (1 = highest) and 67% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,899 single / $21,343 family
Average employer contribution per enrolled employee a year at District of Columbia private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$18.40 in 2026
District of Columbia's rate since Jul 1, 2026. Applies to all employers; adjusted each July 1.
per DC Department of Employment Services, as of Jul 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in District of Columbia
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,057 hours | $49,447 |
|---|---|
| Paid sick leave required by law23 hours | $553 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.7% of $9,000 | $243 |
| Universal Paid Leave tax (employer-paid)0.75% of $50,000 | $375 |
| Workers' compensation (state index rate)$0.73 per $100 of payroll | $365 |
| Health insurance (single coverage, state average)average employer contribution | $7,899 |
| Total cost a year | $62,749 |
25.5% on top of pay · $30.51 per hour worked
Hourly employee at $19 an hour
$19 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,057 hours | $39,083 |
|---|---|
| Paid sick leave required by law23 hours | $437 |
| Social Security (employer share)6.2% of $39,520 | $2,450 |
| Medicare (employer share)1.45% of $39,520 | $573 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.7% of $9,000 | $243 |
| Universal Paid Leave tax (employer-paid)0.75% of $39,520 | $296 |
| Workers' compensation (state index rate)$0.73 per $100 of payroll | $289 |
| Health insurance (single coverage, state average)average employer contribution | $7,899 |
| Total cost a year | $51,312 |
29.8% on top of pay · $24.95 per hour worked
What changes for District of Columbia employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in District of Columbia?
About $62,749 a year in 2026 for a $50,000 employee of a new District of Columbia employer with 10 staff: $12,749 above pay, of which $7,899 is health coverage, $365 workers' comp and $243 District of Columbia unemployment tax. At $18 an hour full time: $49,042.
What payroll taxes do employers pay in District of Columbia?
District of Columbia payroll taxes on a $50,000 employee come to $4,485 a year for a new employer: $243 of District of Columbia unemployment insurance at 2.7% on $9,000, $375 for Universal Paid Leave tax, $3,825 of Social Security and Medicare and $42 of FUTA.
What is the District of Columbia SUTA rate for new employers in 2026?
2.7% on the first $9,000 of each employee's pay: up to $243 per employee a year.
What is the minimum wage in District of Columbia in 2027?
$18.40 an hour in 2026; District of Columbia had not published its 2027 rate by Oct 23, 2026.
Is paid sick leave required in District of Columbia?
Yes. Earned by employer size: 1 hour per 87 hours up to 3 days (under 25 employees), 1 per 43 up to 5 days (25–99), 1 per 37 up to 7 days (100 or more). That is 56 paid hours a year for a full-time District of Columbia employee at 100 employees.
How much does workers' comp cost in District of Columbia?
$0.73 per $100 of payroll at District of Columbia's index rate (rank 43 of 51, 67% of the median): about $365 on $50,000 of pay.
How much do District of Columbia employers pay for health insurance?
$7,899 a year per employee with single coverage and $21,343 with family coverage, the average District of Columbia private-employer share of $9,762 and $29,371 premiums in 2025.
Does District of Columbia have a paid family leave or disability tax for employers?
Every private employer pays 0.75% of each covered employee’s wages; nothing is deducted from workers.
More employer cost pages
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Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.