New York · 2026 and 2027
New York employer payroll taxes and employee cost: 4.025% SUTA on $17,600
In New York, a $50,000 employee costs a new employer about $64,247 a year in 2026: 28.5% 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 New York
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 York 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 York unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- New York unemployment insurance (SUTA)
4.025% of $17,600
New employers pay 4.025% on the first $17,600 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
- State paid leave and disability premiums
None
New York has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
40 hours / 56 hours a year
One hour per 30 hours worked; up to 40 paid hours a year with 5 to 99 employees, 56 hours with 100 or more. The hours are paid but not worked, so they raise the cost per hour worked.
per New York State, as of Jan 1, 2021
- Workers' compensation
$1.98 per $100 of payroll
Index rate for a standard mix of job classes: rank 3 of 51 (1 = highest) and 182% 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)
$8,682 single / $22,677 family
Average employer contribution per enrolled employee a year at New York private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$16 in 2026, $16 in 2027
New York's rate. Rest of the state shown; New York City, Long Island and Westchester: $17.00 From January 1, 2027: $16 (Rest of the state; $17.00 in New York City, Long Island and Westchester. No increase on January 1, 2027).
per New York State Department of Labor, as of Oct 8, 2026; per Office of the Governor of New York, as of Jan 1, 2027
- Disability benefits insurance and Paid Family Leave
Not included
Disability benefits insurance and Paid Family Leave: employer premiums depend on the insurer; Paid Family Leave is funded by employees.
Checked against each source on Oct 23, 2026.
Two worked examples in New York
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)4.025% of $17,600 | $708 |
| Workers' compensation (state index rate)$1.98 per $100 of payroll | $990 |
| Health insurance (single coverage, state average)average employer contribution | $8,682 |
| Total cost a year | $64,247 |
28.5% on top of pay · $31.49 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)4.025% of $17,600 | $708 |
| Workers' compensation (state index rate)$1.98 per $100 of payroll | $741 |
| Health insurance (single coverage, state average)average employer contribution | $8,682 |
| Total cost a year | $50,478 |
34.8% on top of pay · $24.74 per hour worked
What changes for New York 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 York's minimum wage stays $16 an hour on January 1, 2027 (Rest of the state; $17.00 in New York City, Long Island and Westchester. No increase on January 1, 2027). per Office of the Governor of New York, 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 York?
About $64,247 a year in 2026 for a $50,000 employee of a new New York employer with 10 staff: $14,247 above pay, of which $8,682 is health coverage, $990 workers' comp and $708 New York unemployment tax. At $18 an hour full time: $50,478.
What payroll taxes do employers pay in New York?
New York new employers pay $4,575 yearly on a $50,000 salary, $708 of it state unemployment tax.
What is the New York SUTA rate for new employers in 2026?
4.025% on the first $17,600 of each employee's pay: up to $708 per employee a year.
What is the minimum wage in New York in 2027?
$16 an hour from January 1, 2027 (Rest of the state; $17.00 in New York City, Long Island and Westchester. No increase on January 1, 2027), after $16 an hour in 2026: $33,280 for a full-time year.
Is paid sick leave required in New York?
Yes. One hour per 30 hours worked; up to 40 paid hours a year with 5 to 99 employees, 56 hours with 100 or more. That is 56 paid hours a year for a full-time New York employee at 100 employees.
How much does workers' comp cost in New York?
$1.98 per $100 of payroll at New York's index rate (rank 3 of 51, 182% of the median): about $990 on $50,000 of pay.
How much do New York employers pay for health insurance?
$8,682 a year per employee with single coverage and $22,677 with family coverage, the average New York private-employer share of $10,913 and $29,752 premiums in 2025.
More employer cost pages
Cities in New York 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.