Louisiana · 2026 and 2027
Louisiana employer payroll taxes and employee cost: SUTA from 1% on $7,000
In Louisiana, a $50,000 employee costs a new employer about $61,189 a year in 2026: 22.4% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Louisiana
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 Louisiana 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 Louisiana unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Louisiana unemployment insurance (SUTA)
At least 1% of $7,000
New employers pay their industry's average rate, at least 1% under federal law, on the first $7,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history. The state assigns new employers their industry’s average rate; 1.0% is the lowest rate federal law allows.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026; per Washington Employment Security Department, as of Jan 1, 2026
- State paid leave and disability premiums
None
Louisiana has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
48 hours a year
At least 48 hours of paid sick leave a year (one hour per 30 hours worked). The hours are paid but not worked, so they raise the cost per hour worked.
per City of Los Angeles Office of Wage Standards, as of Jul 1, 2017
- Workers' compensation
$1.41 per $100 of payroll
Index rate for a standard mix of job classes: rank 9 of 51 (1 = highest) and 129% 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)
$6,547 single / $17,839 family
Average employer contribution per enrolled employee a year at Louisiana private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$7.25 in 2026
Louisiana pays the federal $7.25 minimum. No state minimum wage law.
per U.S. Department of Labor, Wage and Hour Division, as of Oct 8, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Louisiana
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 worked2,032 hours | $48,846 |
|---|---|
| Paid sick leave required by law48 hours | $1,154 |
| 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)1% of $7,000 | $70 |
| Workers' compensation (state index rate)$1.41 per $100 of payroll | $705 |
| Health insurance (single coverage, state average)average employer contribution | $6,547 |
| Total cost a year | $61,189 |
22.4% on top of pay · $30.11 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,032 hours | $36,576 |
|---|---|
| Paid sick leave required by law48 hours | $864 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $7,000 | $70 |
| Workers' compensation (state index rate)$1.41 per $100 of payroll | $528 |
| Health insurance (single coverage, state average)average employer contribution | $6,547 |
| Total cost a year | $47,491 |
26.8% on top of pay · $23.37 per hour worked
What changes for Louisiana 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 Louisiana?
About $61,189 a year in 2026 for a $50,000 employee of a new Louisiana employer with 10 staff: $11,189 above pay, of which $6,547 is health coverage, $705 workers' comp and $70 Louisiana unemployment tax. At $18 an hour full time: $47,491.
What payroll taxes do employers pay in Louisiana?
Louisiana new employers pay $3,937 yearly on a $50,000 salary, $70 of it state unemployment tax.
What is the Louisiana SUTA rate for new employers in 2026?
Louisiana gives new employers their industry's average rate, at least 1% under federal law, on the first $7,000 of pay ($70 or more per employee).
What is the minimum wage in Louisiana in 2027?
Louisiana uses the federal $7.25 an hour, so 2027 starts there unless the state acts.
Is paid sick leave required in Louisiana?
Yes. At least 48 hours of paid sick leave a year (one hour per 30 hours worked). That is 48 paid hours a year for a full-time Louisiana employee at 100 employees.
How much does workers' comp cost in Louisiana?
$1.41 per $100 of payroll at Louisiana's index rate (rank 9 of 51, 129% of the median): about $705 on $50,000 of pay.
How much do Louisiana employers pay for health insurance?
$6,547 a year per employee with single coverage and $17,839 with family coverage, the average Louisiana private-employer share of $8,806 and $25,647 premiums in 2025.
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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.