Employee Cost: Louisiana vs Massachusetts (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Louisiana saves $422/employee/year

$65,528 in Louisiana vs $65,949 in Massachusetts

Louisiana

$65,528

1.09x salary

Massachusetts

$65,949

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component LA MA Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $116 $345 -$230
Workers' Compensation $780 $768 +$12
State-Mandated Insurance $0 $204 -$204
Total Employer Cost $65,528 $65,949 -$422

Tax Rate Comparison

Rate Louisiana Massachusetts
SUTA Rate Range 0.09% – 6.0% 0.56% – 8.4%
SUTA Typical Rate 1.5% 2.3%
SUTA Wage Base $7,700 $15,000
Workers' Comp Rate 1.3% 1.28%
State Income Tax Yes Yes
Paid Family Leave Not required 0.34%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Louisiana over Massachusetts saves $422 per employee per year in employer-side payroll costs alone. For a team of 10, that's $4,215 annually.

The biggest difference comes from SUTA (state unemployment tax) — Louisiana charges 1.5% vs Massachusetts's 2.3%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary LA Total MA Total Difference
$30,000 $32,843 $33,168 -$326
$40,000 $43,738 $44,095 -$358
$50,000 $54,633 $55,022 -$390
$60,000 $65,528 $65,949 -$422
$75,000 $81,870 $82,340 -$470
$100,000 $109,108 $109,657 -$550
$125,000 $136,345 $136,975 -$630
$150,000 $163,583 $164,292 -$710

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of LA.

Get Free Business Tips

Join small business owners getting weekly financial tips and calculator updates. No spam, unsubscribe anytime.

We respect your privacy. Unsubscribe with one click.