How Much Does It Cost to Hire an Employee in New Jersey? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in New Jersey.
Total Cost at $60K Salary
$66,584
Cost multiplier: 1.11x
SUTA Rate (Mid)
2.6%
Wage base: $42,300
Workers' Comp Rate
1.42%
Has state income tax
New Jersey Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.4% – 6.8% |
| SUTA New Employer Rate (typical) | 2.6% |
| SUTA Wage Base | $42,300 |
| Workers' Compensation (avg) | 1.42% of payroll |
| State Income Tax | Yes |
| Disability Insurance | 0.0% |
NJ TDI and FLI are employee-funded. No employer cost.
Example Employer Costs in New Jersey
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (NJ) | $1,040 | $1,100 | $1,100 |
| Workers' Comp | $568 | $852 | $1,136 |
| State Programs (DI/PFL) | $0 | $0 | $0 |
| Total Employer Taxes | $4,710 | $6,584 | $8,398 |
| Total Cost (salary + taxes) | $44,710 (1.12x) | $66,584 (1.11x) | $88,398 (1.1x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
How New Jersey Compares
New Jersey's typical SUTA rate of 2.6% is above the national average of ~1.70%. However, with a wage base of $42,300, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.42% of payroll is above the national average of ~1.20%.
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