NY · Payroll tax 2026
The true cost of hiring in New York
Estimate what a W-2 employee costs in New York and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a New York hire
Pre-filled with a 4.03% base new-employer rate. Adjust SUI, salary, benefits, and the 1099 rate to fit your hire.
Results update instantly. Your values stay in this browser.
A W-2 hire in New York costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 4.03% base new-employer rate on the first $17,600 of wages, producing up to about $708 of state UI tax per worker before experience-rating or account-specific adjustments. New York taxes wage income, which creates a withholding obligation but is not an employer-paid tax. MTA payroll tax (MCTMT) applies in the NYC metro; DBL coverage is required. The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
New York employer tax facts
| Item | NY |
|---|---|
| Base new-employer SUI rate | 4.03% |
| SUI taxable wage base | $17,600 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | Yes |
| Worker classification test | Common-law control test |
Extra employer taxes: MTA payroll tax (MCTMT) applies in the NYC metro; DBL coverage is required.
Example: a $75,000 hire in New York
At a $75,000 base salary with typical benefits, a W-2 employee in New York costs an employer $99,788 per year — $24,788 above base pay. An equivalent 1099 contract at $75,000 would cost $24,788 less; the breakeven contract rate is $99,788.
Misclassification risk in New York
Test: Common-law control test
Common-law framework; industry-specific classification statutes may also apply.
Penalties by stateCompare nearby rates
New York's 4.03% new-employer SUI rate sits near Pennsylvania (3.82%), California (3.4%), Colorado (3.05%), Nevada (2.95%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
New York hiring-cost FAQ
What SUI rate does HiringMath use for New York?
The calculator starts with a 4.03% base new-employer rate, applied to the first $17,600 of each employee's 2026 wages. Your assigned rate can differ because of industry, surcharges, and claims history, so replace the default with the rate on your state notice when available.
Does New York have a state income tax?
Yes. New York taxes wage income. Employers withhold it from employee pay, but it does not directly increase the employer's payroll-tax cost.
What should employers know about worker classification in New York?
Common-law framework; industry-specific classification statutes may also apply. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.