Payroll Cost per Employee in New York
2026 estimates — total employer cost including taxes and benefits
Min wage in New York: $16.00/hr NYC, $15.00 rest of state | SUTA: 2.025–9.825% on first $12,300
Calculate Total Payroll Cost in New York
Payroll Tax Breakdown — New York 2026
| Tax / Cost | Rate / Rule | Annual Amount |
|---|---|---|
| Base salary | Per agreement | $83,600 |
| Social Security (employer) | 6.2% on first $168,600 | $5,183 |
| Medicare (employer) | 1.45% of all wages | $1,212 |
| FUTA (federal unemployment) | 0.6% on first $7,000 | $42 |
| New York SUTA | 2.025–9.825% on first $12,300 | $600 |
| Benefits (health, 401k, etc) | ~18% of salary (typical) | $15,048 |
| Total Employer Cost | $106,063 | |
Based on $83,600 median salary in New York. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: NYC additional income tax 3.078–3.876% for NYC residents; MTA tax for NYC employers.
Payroll Requirements in New York
1. New York Payroll Tax & Compliance Overview
New York has one of the most complex and costly payroll environments. Key requirements: state income tax withholding (4–10.9%), high SUI rates (average 3–4%), MTA Payroll Mobility Tax for employers in NYC metro with $312,500+ payroll, mandatory NYC Paid Safe and Sick Leave, NYC Earned Safe & Sick Time Act, and NY Paid Family Leave (PFL) deduction. NYC additionally levies an unincorporated business tax (UBT) and workers in NYC pay NYC personal income tax.
2. Top Tips for New York Employers
New York employers: use New York-compliant payroll software (Gusto, ADP, Paychex have strong NY support). Track NYC vs. non-NYC employees separately — NYC employees have additional tax obligations. NY PFL (Paid Family Leave) deduction from employees is required by law — don't miss this.
3. Key New York Payroll Facts
- Minimum wage: $16.00/hr NYC, $15.00 rest of state
- State income tax: 4–10.9%
- State unemployment (SUTA): 2.025–9.825% on first $12,300
- Additional: NYC additional income tax 3.078–3.876% for NYC residents; MTA tax for NYC employers
Run New York Payroll Automatically
Automated payroll software handles New York tax calculations, filings, and W-2s for $40–$150/month.
New York Payroll Summary
- →Avg salary: $83,600/yr
- →Total cost: $106,063/yr
- →Overhead rate: ~27% above salary
- →Min wage: $16.00/hr NYC, $15.00 rest of state
- →State income tax: 4–10.9%