Cost to hire an employee in Kentucky
On top of a $50,000 salary, a Kentucky employer pays roughly $4,571 in payroll taxes and insurance before benefits, about 9.1% of wages.
Last verified November 2, 2026. Sources: oui.doleta.gov, oregon.gov.
What a Kentucky employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Kentucky unemployment (SUTA) | 2.7% new employer 0.3%–9% experienced | First $12,000 |
| Workers' compensation | ~$0.76 per $100 | Varies by job class |
Service capacity upgrade fund assessment, included in the assigned rate (not itemized in sources)
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,310 | 9.5% | $38,310 |
| $50,000 | $4,571 | 9.1% | $54,571 |
| $75,000 | $6,674 | 8.9% | $81,674 |
| $100,000 | $8,776 | 8.8% | $108,776 |
| $150,000 | $12,981 | 8.7% | $162,981 |
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.
Kentucky vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Kentucky | $12,000 | 2.7% | $4,571 |
| Illinois | $14,250 | 3.35% | $5,014 |
| Indiana | $9,500 | 2.5% | $4,460 |
| Missouri | $9,000 | 2.38% | $4,736 |
| Ohio | $9,000 | 2.85% | $4,464 |
| Tennessee | $7,000 | 2.7% | $4,456 |
| Virginia | $8,000 | 2.5% | $4,432 |
| West Virginia | $9,500 | 2.7% | $4,394 |
Frequently asked questions
- How much does it cost to hire an employee in Kentucky?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,571 (9.1%), before benefits, for a total of $54,571.
- What is the Kentucky SUTA rate for new employers?
- New employers generally pay 2.7% on the first $12,000 of each employee's wages. Experienced employers pay between 0.3% and 9%.
- Do Kentucky employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.