How Much Does It Cost to Hire an Employee in Utah? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Utah.
Hiring a $60,000/year employee in Utah costs employers approximately $65,649 total in 2026, including $5,649 in mandatory payroll taxes and workers' comp. That's a 1.09x multiplier on base salary.
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Total Cost at $60K Salary
$65,649
Cost multiplier: 1.09x
SUTA Rate (Mid)
1.0%
Wage base: $50,700
Workers' Comp Rate
0.85%
Has state income tax
Key Insight
For a $60,000 salary in Utah, employers pay $5,649 in mandatory taxes — a 1.09x cost multiplier. Utah's SUTA rate (1.0%) is below the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Utah's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Utah Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.1% – 7.0% |
| SUTA New Employer Rate (typical) | 1.0% |
| SUTA Wage Base | $50,700 |
| Workers' Compensation (avg) | 0.85% of payroll |
| State Income Tax | Yes |
Example Employer Costs in Utah
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 (UT) | $400 | $507 | $507 |
| Workers' Comp | $340 | $510 | $680 |
| Total Employer Taxes | $3,842 | $5,649 | $7,349 |
| Total Cost (salary + taxes) | $43,842 (1.1x) | $65,649 (1.09x) | $87,349 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Utah Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Utah Compares
Utah's typical SUTA rate of 1.0% is below the national average of ~1.70%. However, with a wage base of $50,700, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 0.85% of payroll is below the national average of ~1.20%.
Utah Employer Environment
Below-average employer costs- State income tax applies — factor into total compensation packages
- Low SUTA rate (1.0% on $50,700 wage base) — below-average unemployment insurance cost
- Competitive workers' comp rate (0.85%) — below-average, favorable for labor-intensive businesses
Utah's below-average SUTA and competitive workers' comp rates translate to a meaningful cost advantage per employee compared to the national norm, particularly for labor-intensive businesses.
Utah Employment Profile
Utah has a very low SUTA wage base with below-average typical rates and no paid family leave mandate, reflecting its consistently low unemployment rate.
technology (Silicon Slopes), outdoor recreation, financial services
Utah's 'Silicon Slopes' corridor (Lehi to Salt Lake City) has attracted hundreds of tech companies; startup competition for software engineers has pushed wages near Seattle levels in some specialties.
Cost at Different Salary Levels in Utah
Total employer cost including all mandatory payroll taxes
Compare Utah With
Employee Costs in Other States
Hiring Cost by Industry in Utah
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Utah
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $108,600 | 129,650 |
| Computer and Mathematical | $101,540 | 72,060 |
| Architecture and Engineering | $86,300 | 33,190 |
| Legal | $80,510 | 11,290 |
| Healthcare Practitioners and Technical | $79,440 | 85,210 |
| Business and Financial Operations | $73,750 | 122,440 |
| Life, Physical, and Social Science | $70,730 | 17,150 |
| Installation, Maintenance, and Repair | $57,110 | 66,680 |
States With Similar Hiring Costs
These states have SUTA rates close to Utah's 1.0% — good for cost benchmarking.
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Simplify Payroll in Utah
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