Ohio vs Washington: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,337 in Ohio and $66,858 in Washington. Ohio saves $1,521/year per hire.
Ohio is $1,521 per year cheaper than Washington for a $60,000 employee in 2026, with total employer costs of $65,337 vs $66,858 including all mandatory payroll taxes.
Share This Page
At a $60,000 salary
Ohio saves $1,521/employee/year
$65,337 in Ohio vs $66,858 in Washington
Ohio
$65,337
1.09x salary
Washington
$66,858
1.11x salary
Shareable Insights
$15,210/yr for a 10-person team
Same salaries, same roles. Just Ohio instead of Washington.
SUTA accounts for 61% of the gap
$933 difference in SUTA alone between these states.
Washington adds $288 in mandatory programs
Disability insurance and paid family leave that Ohio doesn't require.
Washington: every $1 in salary costs $1.11
vs $1.09 in Ohio. That gap compounds fast.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | OH | WA | 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) | $117 | $1,050 | -$933 |
| Workers' Compensation | $588 | $888 | -$300 |
| State-Mandated Insurance | $0 | $288 | -$288 |
| Total Employer Cost | $65,337 | $66,858 | -$1,521 |
Tax Rate Comparison
| Rate | Ohio | Washington |
|---|---|---|
| SUTA Rate Range | 0.1% – 6.5% | 0.2% – 5.8% |
| SUTA Typical Rate | 1.3% | 1.75% |
| SUTA Wage Base | $9,000 | $78,200 |
| Workers' Comp Rate | 0.98% | 1.48% |
| State Income Tax | Yes | No |
| Paid Family Leave | Not required | 0.48% |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Ohio over Washington saves $1,521 per employee per year in employer-side payroll costs alone. For a team of 10, that's $15,210 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from SUTA (state unemployment tax) — Ohio charges 1.3% on the first $9,000 vs Washington's 1.75% on $78,200. The rate difference of 0.45 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 Ohio 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.
Choosing Between Ohio and Washington?
Cost alone favors Ohio: At a $60K salary, you save $1,521 per employee — a real number that compounds across a growing team. At 20 employees, that's $30,420/year before factoring in any raises.
When Washington might still make sense: If your business depends on talent concentrated in Washington — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $1,521/employee savings a strong argument for Ohio-based registration.
What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Ohio has state income tax; Washington has no state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
Ohio
Ohio's $9,000 SUTA wage base is among the lowest in the Midwest, and it operates a state-managed workers' compensation bureau (BWC) that provides stable — though sometimes higher — rates.
healthcare, automotive manufacturing, financial services
Ohio's Bureau of Workers' Compensation charges industry-rated premiums; employers can earn group rating discounts through industry associations, sometimes reducing rates significantly.
Washington
Washington has no state income tax but a high SUTA wage base and mandatory paid family leave contributions, making it one of the higher employer-tax states on the West Coast.
cloud computing (Amazon, Microsoft), aerospace (Boeing), retail (Starbucks, Costco)
Seattle's tech labor market is heavily influenced by Amazon and Microsoft compensation; total comp packages including equity have created significant wage inflation for software engineers and adjacent roles.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- State income tax applies — factor into total compensation packages
- SUTA rate 1.3% (wage base $9,000) — in line with national average
- Workers' comp rate 0.98% — near national average, varies by industry classification
- No state income tax — employees keep more of their paycheck, a recruiting advantage
- SUTA rate 1.75% (wage base $78,200) — in line with national average
- Workers' comp rate 1.48% — near national average, varies by industry classification
- State paid family leave program (0.48% employer share) — additional mandatory payroll cost
Hiring Strategy Takeaway
The $1,521 per-employee cost gap at $60K salary is primarily driven by SUTA rates (OH: 1.3% vs WA: 1.75%). Washington's lack of state income tax gives it a recruiting edge — employees take home more pay for equivalent salaries. For a growing business, this difference compounds quickly — a 10-person team in Ohio costs $15,210 less annually than the same team in Washington, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | OH Total | WA Total | Difference |
|---|---|---|---|
| $30,000 | $32,748 | $33,450 | -$702 |
| $40,000 | $43,611 | $44,586 | -$975 |
| $50,000 | $54,474 | $55,722 | -$1,248 |
| $60,000 | $65,337 | $66,858 | -$1,521 |
| $75,000 | $81,632 | $83,562 | -$1,931 |
| $100,000 | $108,789 | $111,021 | -$2,232 |
| $125,000 | $135,947 | $138,423 | -$2,477 |
| $150,000 | $163,104 | $165,826 | -$2,722 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of OH.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
Washington
Simplify Payroll in Ohio and Washington
These providers handle tax calculations, filings, and compliance automatically.
All-in-one payroll, benefits, and HR. Automatically calculates and files federal, state, and local payroll taxes.
Payroll and tax filing for businesses of all sizes with built-in state-specific compliance.
Payroll, HR, and benefits in one platform. Handles multi-state employment and tax filings.
Some links may be affiliate links. CostCrunch may earn a commission at no extra cost to you.
Get notified when hiring costs change in these states
We track SUTA rates, workers' comp, and payroll taxes across all 50 states. Free updates.
More State Comparisons
Was this calculator helpful?
Your feedback helps us improve CostCrunch
Thank you for your feedback! ✓
Save Your Results
Download a professional PDF report with your complete analysis, charts, and key insights.
Download Your Report
Enter your email to get your personalized PDF report. We'll also send you useful financial tips.
No spam. Unsubscribe anytime.
More Business Calculators
Break-Even Calculator
Find how many units to sell to cover costs
Employee Cost Calculator
Find the true cost of hiring an employee
Startup Cost Estimator
Estimate one-time and recurring startup costs
Profit Margin Calculator
Calculate gross, operating, and net margins
Self-Employment Tax Calculator
Estimate SE tax and quarterly payments for freelancers
Loan Comparison
Compare loan options side by side
Markup & Margin
Convert between markup and margin percentages
Payroll Tax Calculator
Estimate employer payroll taxes by state
Get notified when tax rates change
We monitor payroll tax rates, SUTA, and cost-of-living data across all 50 states. When rates change, we'll let you know. Free, no spam.
We respect your privacy. Unsubscribe with one click.