Jersey City, New Jersey
Jersey City employer costs: minimum wage, taxes and paid leave
Jersey City charges employers a 1% payroll tax that the rest of New Jersey does not. A $50,000 employee costs a new employer about $64,445 a year here in 2026.
Calculate the cost of an employee in Jersey City
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.
Jersey City employer rules on top of New Jersey's
What Jersey City adds, then the federal and New Jersey lines every employer here pays. The full New Jersey breakdown is on the state page.
- Jersey City payroll tax
1% of payroll
Employers located in Jersey City pay 1% of gross payroll; wages of Jersey City residents and employers with under $2,500 of quarterly payroll are exempt.
per City of Jersey City, Division of Finance, as of Jan 1, 2026
- 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
Checked against each source on Oct 23, 2026.
Two worked examples in Jersey City
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 |
| Jersey City payroll tax1% of $50,000 | $500 |
| 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 | $64,445 |
28.9% on top of pay · $31.59 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 |
| Jersey City payroll tax1% of $37,440 | $374 |
| 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 | $50,285 |
34.3% on top of pay · $24.65 per hour worked
What changes 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
What is the minimum wage in Jersey City?
Jersey City uses the New Jersey rate: $15.92 an hour in 2026 and $16.48 from January 1, 2027.
How much does an employee cost in Jersey City?
$64,445 a year for a $50,000 employee of a new Jersey City employer with 10 staff (28.9% above pay), $500 more than elsewhere in New Jersey because of Jersey City's own charges.
What payroll taxes do employers pay in Jersey City?
Jersey City payroll tax on top of $5,345 of federal and New Jersey payroll taxes on a $50,000 salary.
Is paid sick leave required in Jersey City?
Yes, under New Jersey's rule: 40 paid hours a year for a full-time Jersey City employee at 100 staff.
What does a minimum-wage employee cost in Jersey City?
$45,348 a year at $15.92 an hour full time in Jersey City: $22.23 per hour worked.
Who pays the Jersey City payroll tax?
Employers located in Jersey City pay 1% of gross payroll; wages of Jersey City residents and employers with under $2,500 of quarterly payroll are exempt. On a $50,000 employee that is $500 a year.
More employer cost pages
New Jersey
Other cities with their own rules
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.