Cost to hire an employee in New Jersey
On top of a $50,000 salary, a New Jersey employer pays roughly $6,451 in payroll taxes and insurance before benefits, about 12.9% of wages.
Last verified November 2, 2026. Sources: nj.gov, oregon.gov.
What a New Jersey 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 |
| New Jersey unemployment (SUTA) | 2.8% new employer 0.5%–5.8% experienced | First $44,800 |
| Temporary Disability Insurance (employee) | 0.5% | Wages up to $171,100 |
| Workers' compensation | ~$2.16 per $100 | Varies by job class |
Workforce Development/Supplemental Workforce Fund (WF/SWF) 0.1175%, included in the new employer rate. Employer Disability Insurance (TDI) is 0.5% for new employers (experience-rated). Employee TDI 0.19% and FLI 0.23% are separate (2026).
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $4,631 | 13.2% | $39,631 |
| $50,000 | $6,451 | 12.9% | $56,451 |
| $75,000 | $9,029 | 12% | $84,029 |
| $100,000 | $11,606 | 11.6% | $111,606 |
| $150,000 | $16,761 | 11.2% | $166,761 |
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.
New Jersey vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| New Jersey | $44,800 | 2.8% | $6,451 |
| Delaware | $14,500 | 1.2% | $4,726 |
| New York | $17,600 | 4.1% | $5,579 |
| Pennsylvania | $10,000 | 3.82% | $4,819 |
Frequently asked questions
- How much does it cost to hire an employee in New Jersey?
- On a $50,000 salary, employer payroll taxes and insurance add about $6,451 (12.9%), before benefits, for a total of $56,451.
- What is the New Jersey SUTA rate for new employers?
- New employers generally pay 2.8% on the first $44,800 of each employee's wages. Experienced employers pay between 0.5% and 5.8%.
- Do New Jersey employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.