New Jersey · 2026 and 2027
New Jersey employer payroll taxes and employee cost: 2.8% SUTA on $44,800
In New Jersey, a $50,000 employee costs a new employer about $63,945 a year in 2026: 27.9% 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 New Jersey
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 New Jersey 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 New Jersey unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- New Jersey unemployment insurance (SUTA)
2.8% of $44,800
New employers pay 2.8% on the first $44,800 of each employee's pay in 2026. After two to three years the rate follows your own claims history. The 2027 wage base is $46,400. Unemployment insurance 2.6825% plus Workforce Development and Supplemental Workforce Funds 0.1175%.
per New Jersey Department of Labor and Workforce Development, as of Jan 1, 2026
- Temporary Disability Insurance (employer, new employer rate)
0.5% from 1+ employees
New employers pay 0.5% for state disability insurance on the same $44,800 wage base as unemployment insurance in 2026 ($46,400 in 2027).
per New Jersey Department of Labor and Workforce Development, as of Jul 1, 2025
- Paid sick leave
40 hours a year
One hour of earned sick leave per 30 hours worked, up to 40 hours a year, for employers of all sizes. The hours are paid but not worked, so they raise the cost per hour worked.
per New Jersey Department of Labor and Workforce Development, as of Oct 29, 2018
- Workers' compensation
$2.16 per $100 of payroll
Index rate for a standard mix of job classes: rank 2 of 51 (1 = highest) and 198% 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)
$7,520 single / $22,613 family
Average employer contribution per enrolled employee a year at New Jersey private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$15.92 in 2026, $16.48 in 2027
New Jersey's rate since Jan 1, 2026. Seasonal and small employers (fewer than 6 employees): $15.23 From January 1, 2027: $16.48 (Most employers; $16.25 for seasonal and small employers (fewer than six employees)).
per New Jersey Department of Labor and Workforce Development, as of Jan 1, 2026; per New Jersey Department of Labor and Workforce Development, as of Jan 1, 2027
Checked against each source on Oct 23, 2026.
Two worked examples in New Jersey
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 worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| 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)2.8% of $44,800 | $1,254 |
| Temporary Disability Insurance (employer, new employer rate)0.5% of $44,800 | $224 |
| Workers' compensation (state index rate)$2.16 per $100 of payroll | $1,080 |
| Health insurance (single coverage, state average)average employer contribution | $7,520 |
| Total cost a year | $63,945 |
27.9% on top of pay · $31.35 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $36,720 |
|---|---|
| Paid sick leave required by law40 hours | $720 |
| 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)2.8% of $37,440 | $1,048 |
| Temporary Disability Insurance (employer, new employer rate)0.5% of $37,440 | $187 |
| Workers' compensation (state index rate)$2.16 per $100 of payroll | $809 |
| Health insurance (single coverage, state average)average employer contribution | $7,520 |
| Total cost a year | $49,910 |
33.3% on top of pay · $24.47 per hour worked
What changes for New Jersey 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
- New Jersey's minimum wage becomes $16.48 an hour on January 1, 2027 (Most employers; $16.25 for seasonal and small employers (fewer than six employees)). per New Jersey Department of Labor and Workforce Development, as of Jan 1, 2027
- The New Jersey unemployment insurance wage base becomes $46,400, with a 2.8% new-employer rate. per New Jersey Department of Labor and Workforce Development, 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 New Jersey?
About $63,945 a year in 2026 for a $50,000 employee of a new New Jersey employer with 10 staff: $13,945 above pay, of which $7,520 is health coverage, $1,080 workers' comp and $1,254 New Jersey unemployment tax. At $18 an hour full time: $49,910.
What payroll taxes do employers pay in New Jersey?
New Jersey payroll taxes on a $50,000 employee come to $5,345 a year for a new employer: $1,254 of New Jersey unemployment insurance at 2.8% on $44,800, $224 for Temporary Disability Insurance, $3,825 of Social Security and Medicare and $42 of FUTA.
What is the New Jersey SUTA rate for new employers in 2026?
2.8% on the first $44,800 of each employee's pay: up to $1,254 per employee a year. For 2027 the wage base is $46,400 and the rate 2.8%.
What is the minimum wage in New Jersey in 2027?
$16.48 an hour from January 1, 2027 (Most employers; $16.25 for seasonal and small employers (fewer than six employees)), after $15.92 an hour in 2026: $34,278 for a full-time year.
Is paid sick leave required in New Jersey?
Yes. One hour of earned sick leave per 30 hours worked, up to 40 hours a year, for employers of all sizes. That is 40 paid hours a year for a full-time New Jersey employee at 100 employees.
How much does workers' comp cost in New Jersey?
$2.16 per $100 of payroll at New Jersey's index rate (rank 2 of 51, 198% of the median): about $1,080 on $50,000 of pay.
How much do New Jersey employers pay for health insurance?
$7,520 a year per employee with single coverage and $22,613 with family coverage, the average New Jersey private-employer share of $9,743 and $29,666 premiums in 2025.
Does New Jersey have a paid family leave or disability tax for employers?
New employers pay 0.5% for state disability insurance on the same $44,800 wage base as unemployment insurance in 2026 ($46,400 in 2027).
More employer cost pages
Cities in New Jersey with their own rules
States with a similar employer cost
Data and rules for every state
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.