MA · Cost to hire 2026
How much does it cost to hire an employee in Massachusetts?
The real first-year cost of a W-2 hire in Massachusetts is the ongoing fully-loaded payroll plus the one-time spend to recruit, onboard, and equip the person. A $75,000 hire runs about $109,714 in year one.
The first-year cost to hire in Massachusetts is high-base ongoing payroll plus the one-time outlays that hit at the start: roughly $8,500 for recruiting, onboarding, and equipment, plus about $1,500 a year for payroll and HR software. On the recurring side, a new employer pays 2.13% State Unemployment Insurance on the first $15,000 of wages, capping SUI at $319.50 per worker, and firms with 25 or more employees also owe the PFML employer share of 0.42% on covered wages. Add the federal layer (6.2% Social Security, 1.45% Medicare, 0.6% FUTA) and ongoing employer taxes typically run 9 to 12% above salary before benefits. Massachusetts taxes wage income, so withholding compliance is part of onboarding. The hiring economy concentrates in life sciences in Cambridge, financial and professional services in Boston, higher education, and Springfield manufacturing, sectors where salaries run high and amplify every rate-based cost. Because the wage base and PFML obligation are larger than in most states, model the full first-year figure precisely before you extend the offer.
Estimate a Massachusetts hire
Pre-filled with Massachusetts's 2.13% new-employer SUI rate. Adjust salary, benefits, and one-time costs to fit your hire.
First-year cost of a $75,000 hire in Massachusetts
| Recurring (annual) | |
| Base salary | $75,000 |
| Employer payroll taxes | $6,414 |
| Workers' comp | $750 |
| Benefits | $10,050 |
| Overhead | $7,500 |
| Software & toolsrecurs yearly | $1,500 |
| One-time (year one) | |
| Recruiting | $4,000 |
| Onboarding & training | $2,000 |
| Equipment & setup | $2,500 |
| Ongoing annual cost (year 2+) | $101,214 |
| Total first-year cost | $109,714 |
First-year cost by salary in Massachusetts
| Base salary | First-year total |
|---|---|
| $50,000 | $79,197 |
| $75,000 | $109,714 |
| $100,000 | $140,232 |
What drives the cost in Massachusetts
Massachusetts's new-employer SUI rate is 2.13% on the first $15,000 of wages, a maximum of $320 per worker per year (above the national average of 2.07%). That sits on top of 7.65% employer FICA and 0.6% FUTA. Massachusetts taxes wage income, which the employee pays, so it adds administration but not direct employer cost.
Extra employer costs: PFML employer share 0.42% (25+ employees).
Compare and dig deeper
Weighing an employee against a contractor? See the Massachusetts W-2 vs 1099 comparison for the breakeven contract rate. Compare neighboring markets, including Connecticut, Arizona, Arkansas, Wyoming, or read how much it costs to hire an employee nationally.
Cost-to-hire FAQ for Massachusetts
- What is included in the first-year cost to hire in Massachusetts?
- Ongoing fully-loaded payroll (salary, 2.13% SUI on the first $15,000 of wages up to $319.50, the 0.42% PFML employer share for firms with 25 or more staff, plus FUTA, Social Security, and Medicare) combined with one-time costs of about $8,500 for recruiting, onboarding, and equipment, and roughly $1,500 a year for software.
- How does the PFML employer share affect ongoing cost in Massachusetts?
- Employers with 25 or more employees owe the Paid Family and Medical Leave employer share of 0.42% on covered wages, an ongoing cost on top of the 2.13% SUI (capped at $319.50). Because it applies across the workforce, it raises the recurring portion of every hire's first-year cost at scale.
- Why does Massachusetts' wage base raise first-year cost?
- SUI applies to the first $15,000 of wages, one of the higher bases nationally, so the full $319.50 SUI cap is reached on most full-time hires. Combined with high prevailing salaries in life sciences and finance, the recurring payroll portion of first-year cost runs heavier than in low-wage-base states.