The employee
Where do they work?
2,080 = 40 hours × 52 weeks. Used for the hourly figure only.
Your state sends your rate each year. 2.7% is a common new-employer rate; many states use something else.
At least $7,000 in every state, and much higher in many. Check your state's unemployment agency.
Set by your insurer or provincial board for your industry. Office work is far lower than construction.
Training, equipment, software seats, anything else that scales with pay.
What they really cost
Gross pay
$55,000.00
Social Security (6.2%)
On the first $184,500 of wages in 2026
$3,410.00
Medicare (1.45%)
On all wages; the 0.9% Additional Medicare Tax has no employer share
$797.50
FUTA (0.6%)
On the first $7,000, assuming the full 5.4% state credit
$42.00
State unemployment (2.7%)
On the first $7,000
$189.00
Workers' compensation (1%)
$550.00
Cost on top of pay
9.1% of gross pay
$4,988.50
Total cost per year
$59,988.50
Per month
$4,999.04
Per paid hour
Pay alone: $26.44 an hour
$28.84
2026 federal rates. Assumes a full year with one employer and on-time state unemployment payments (credit-reduction states pay more FUTA). State and local payroll taxes such as disability or paid leave programs are not included. An estimate, not tax advice.