UT · Payroll tax 2026
The true cost of hiring in Utah
Estimate what a W-2 employee costs in Utah and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a Utah hire
Pre-filled with a 1% industry planning default. 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 Utah costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 1% planning default; the assigned rate varies by industry on the first $50,700 of wages, producing up to about $507 of state UI tax per worker before experience-rating or account-specific adjustments. Utah taxes wage income, which creates a withholding obligation but is not an employer-paid tax. New-employer rates are industry-average based; 1% is a planning default. The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
Utah employer tax facts
| Item | UT |
|---|---|
| SUI planning default | 1% |
| SUI taxable wage base | $50,700 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | Yes |
| Worker classification test | ABC test |
Extra employer taxes: New-employer rates are industry-average based; 1% is a planning default.
Example: a $75,000 hire in Utah
At a $75,000 base salary with typical benefits, a W-2 employee in Utah costs an employer $99,587 per year — $24,587 above base pay. An equivalent 1099 contract at $75,000 would cost $24,587 less; the breakeven contract rate is $99,587.
Misclassification risk in Utah
Test: ABC test
ABC test; back UI taxes, interest, penalties.
Penalties by stateCompare nearby rates
Utah's 1% new-employer SUI rate sits near Alaska (1%), Delaware (1%), Idaho (1%), Iowa (1%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
Utah hiring-cost FAQ
What SUI rate does HiringMath use for Utah?
The calculator starts with a 1% planning default; the assigned rate varies by industry, applied to the first $50,700 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 Utah have a state income tax?
Yes. Utah 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 Utah?
ABC test; back UI taxes, interest, penalties. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.