New Jersey vs Washington: Business Hiring Cost Comparison (2026)

For a business hiring at a $60,000 salary, choosing New Jersey over Washington saves $209 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,092 annually — enough to fund an additional hire or significantly offset operating costs.

The biggest difference comes from SUTA (state unemployment tax) — New Jersey charges 2.6% on the first $44,800 vs Washington's 1.75% on $78,200. The rate difference of 0.85 percentage points is significant because SUTA is levied on every employee and adjusts annually based on your unemployment claims history. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.

A notable difference between these states is mandatory benefit programs. Washington requires employer contributions to paid family leave programs that New Jersey does not mandate — adding $288 per employee annually.

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.