How much does it cost to hire an employee in California?

On a $50,000 salary, employer payroll taxes and insurance add about $5,147 (10.3%), before benefits, for a total of $55,147.

What is the California SUTA rate for new employers?

New employers generally pay 3.5% on the first $7,000 of each employee's wages. Experienced employers pay between 1.6% and 6.2%.

Do California employers pay FUTA?

Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 2.1% with the state unemployment credit, including a 1.5% credit reduction because California has an outstanding federal unemployment loan.

Cost to hire an employee in California

On top of a $50,000 salary, a California employer pays roughly $5,147 in payroll taxes and insurance before benefits, about 10.3% of wages.

Last verified November 2, 2026. Sources: oui.doleta.gov, edd.ca.gov, oregon.gov.

What a California employer pays

Cost	Rate	Applies to
Social Security	6.2%	Wages up to $184,500
Medicare	1.45%	All wages
Federal unemployment (FUTA)	2.1% net	First $7,000
California unemployment (SUTA)	3.5% new employer 1.6%–6.2% experienced	First $7,000
Workers' compensation	~$1.86 per $100	Varies by job class

Employment Training Tax (ETT) 0.1% on the first $7,000, included in the new and min rates. SDI 1.3% (2026) is employee-paid with no wage cap, but it is disability, not UI.

Total cost at different salaries

Salary	Employer taxes & insurance	% of salary	Total cost
$35,000	$3,721	10.6%	$38,721
$50,000	$5,147	10.3%	$55,147
$75,000	$7,525	10%	$82,525
$100,000	$9,902	9.9%	$109,902
$150,000	$14,657	9.8%	$164,657

Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.

California vs. neighboring states

State	SUTA wage base	New-employer rate	Cost on $50,000
California	$7,000	3.5%	$5,147
Arizona	$8,000	2%	$4,377
Nevada	$43,700	3%	$5,543
Oregon	$56,700	2.4%	$5,712

Frequently asked questions

How much does it cost to hire an employee in California?: On a $50,000 salary, employer payroll taxes and insurance add about $5,147 (10.3%), before benefits, for a total of $55,147.
What is the California SUTA rate for new employers?: New employers generally pay 3.5% on the first $7,000 of each employee's wages. Experienced employers pay between 1.6% and 6.2%.
Do California employers pay FUTA?: Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 2.1% with the state unemployment credit, including a 1.5% credit reduction because California has an outstanding federal unemployment loan.