Employee Cost Calculator
Estimate the fully loaded cost of a W-2 hire in California — including 3.4% SUTA, $1.20/$100 workers’ comp, state income tax up to 13.3%, benefits, and overhead.
Open the CalculatorPre-configured with California tax rates. Adjust salary, benefits, and overhead to model your specific hire.
Total Annual Cost
$101,451
Loaded multiplier: 1.27× base salary
Open the interactive calculator to adjust every input and export a PDF report.
Representative 2026 new-employer figures for California. Confirm your experience-rated rate with the state agency.
Each figure on this page is classified and cited. Statutory rates are fixed by law; the new-employer SUTA rate and workers’ comp are representative estimates; benefit/overhead defaults are editable TrueHireCost modeling assumptions.
| Metric | Value | Type | Source | Last verified |
|---|---|---|---|---|
| New-employer SUTA rate | 3.4% | Representative estimate | Employment Development Department (EDD) | Aug 2026 |
| SUTA wage base | $7,000 | Official statutory figure | Employment Development Department (EDD) | Aug 2026 |
| Workers’ comp (office/clerical) | 1.2 / $100 payroll | Representative estimate | DOL Office of Workers’ Compensation Programs | Aug 2026 |
| State income tax | Up to 13.3% | Official statutory figure | Employment Development Department (EDD) | Aug 2026 |
| State minimum wage | $16.90/hr | Official statutory figure | Employment Development Department (EDD) | Aug 2026 |
| State Disability Insurance | 1.3 / $100 wages (employee withholding) | Official statutory figure | Employment Development Department (EDD) | Aug 2026 |
| Employer FICA | 7.65% (SS 6.2% + Medicare 1.45%) | Official statutory figure | IRS Publication 15 (Circular E) | Aug 2026 |
| FUTA (effective) | 0.6% on first $7,000 | Official statutory figure | IRS Publication 15 (Circular E) | Aug 2026 |
| Social Security wage base | $184,500 | Official statutory figure | Social Security Administration | Aug 2026 |
How to read this table
An $80,000 office hire in California costs approximately $101,451 once employer taxes, workers’ comp, benefits, and overhead are added — a 1.27× loaded multiplier.
California also charges an employer-paid Employment Training Tax of 0.1% on the first $7,000 of wages ($7 per employee). California is subject to a federal FUTA credit reduction of 1.2%, raising the effective FUTA rate to 1.8% on the first $7,000 ($126 per employee instead of $42). The U.S. Department of Labor announces each year's reduction in late fall; the 2026 figure is not yet published, so this page uses the verified 2025 reduction as the planning assumption.
Technology, entertainment, agriculture, and biotech power California’s economy — the largest of any U.S. state. When budgeting a hire in California, the biggest state-specific cost drivers are the 3.4% SUTA rate (applied to the first $7,000 of wages), workers’ compensation at $1.20/$100, and state income tax withholding at up to 13.3%. California also withholds State Disability Insurance at $1.30 per $100 of wages (an employee contribution the employer remits, not an employer tax).
Key steps employers must complete when hiring in California.
Employment Development Department (EDD)
California workforce & unemployment agency
Federal employer tax guide
Federal wage & hour division
CA EDD rates & withholding (2026)
California official resource
California official resource
CA Dept of Industrial Relations
California official resource
Editorial Standards
Maintained by the TrueHireCost editorial team
TrueHireCost is an independent research and tooling project. Our content is written and maintained by the TrueHireCost editorial team — not by a licensed CPA, attorney, or HR certificant, and no named professional endorses or "verifies" these pages. Rates, wage bases, and benchmarks are collected from official public sources (IRS, U.S. Department of Labor, state workforce agencies, and the Bureau of Labor Statistics) and labeled with their source and last-reviewed date. State SUTA, workers’ comp, and minimum-wage figures are representative new-employer estimates and should be confirmed with the agency for your specific situation.
Found an outdated rate or a calculation that looks wrong? Email editorial@truehirecost.com and we’ll review and correct it. TrueHireCost is an informational tool, not professional tax, legal, or HR advice — consult a qualified professional before making hiring or payroll decisions.
Last updated 2026-08-24
Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.
IRS
FICA, FUTA tax rate & wage base
U.S. DOL
FUTA credit, federal wage & hour
State Workforce Agencies
SUTA rates, wage bases, new-employer rates
BLS
Industry salary benchmarks & turnover
The fully loaded annual cost of an $80,000 employee in California includes the 3.4% SUTA rate plus the 0.1% ETT, $1.20/$100 workers’ comp, state income tax withholding up to 13.3%, benefits, and overhead. Use the TrueHireCost calculator above for a California-specific estimate.
The representative new-employer SUTA rate in California is 3.4%, applied to the first $7,000 of wages per employee. Your experience-rated rate may differ — confirm with the Employment Development Department (EDD).
Workers’ comp required for all employers. Check the California labor agency for the exact employee-count threshold that applies to your business.
Yes. California levies a state income tax with a top marginal rate of 13.3%. Employers must withhold state income tax from employee wages.
California is subject to a federal FUTA credit reduction: the 5.4% credit for state unemployment contributions is reduced by 1.2%, raising the effective FUTA rate to 1.8% on the first $7,000 of wages ($126 per employee instead of $42). The U.S. Department of Labor announces each year's reduction in late fall; this page uses the verified 2025 reduction as the planning assumption until the 2026 figure is published.
For Estimation Purposes Only
TrueHireCost provides cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.