New York Employee Cost Calculator
New York has high employment costs with $16+ minimum wage (varies by location), state unemployment insurance (2.25%-8.4%), and mandatory paid family leave.
$16.00/hr
4.10%
2.25% -8.40%
$17,600
Enter salary and state, then click Calculate
Ready to run payroll in New York?
Once you know the true employee cost, the next job is paying people correctly. Full-service payroll software can help with pay runs, tax filings, W-2s, new-hire reporting, and state unemployment details.
Disclosure: some payroll links may be affiliate links, at no extra cost to you.
Key Facts About Hiring in New York
Minimum wage: $16.00/hour (NYC, higher in some areas)
SUI rates: 2.25% to 8.4%
Paid Family Leave: ~0.5%
One of highest employment costs
2026 New York Employer Cost Snapshot
New York is a high-complexity payroll state because employers must account for UI, wage-base changes, wage orders, paid family leave withholding, disability insurance, and local rules in New York City and surrounding areas.
Benefits are modeled at 18% for this example. Use the calculator above to replace this with your actual health insurance, retirement, and PTO assumptions.
The 2026 New York UI taxable wage base is $17,600.
New employer UI rates are higher than many lower-cost states, so the capped SUI cost is more visible.
NYC-area compensation, commuter expectations, and benefits can move total cost more than SUI.
Employers often need to coordinate state withholding, local withholding, disability insurance, and paid family leave deductions.
- Register with New York State before paying wages.
- Use the assigned UI rate notice and confirm whether the reemployment service fund rate is included.
- Configure disability insurance and paid family leave withholding separately from employer UI.
- Check NYC, Westchester, and Long Island wage rules when hiring hourly workers.
- For New York employees, the calculator should be treated as the employer-cost baseline, not the full compliance checklist.
- Benefits, local wage rules, and office-location costs often dominate the final budget.
- New York pages should link to contractor comparison content because misclassification is a common risk in high-cost markets.
Ready to run payroll in New York?
Once you know the true employee cost, the next job is paying people correctly. Full-service payroll software can help with pay runs, tax filings, W-2s, new-hire reporting, and state unemployment details.
Disclosure: some payroll links may be affiliate links, at no extra cost to you.
Official New York payroll sources
Frequently Asked Questions - New York
Calculate New York Costs by Industry
Workers' compensation rates, turnover, and compliance requirements vary significantly by industry. See industry-specific costs for New York.
Make Payroll Effortless
Automate payroll taxes, direct deposits, and compliance.
Compare tools that can help run payroll in New York.