3.4% new-employer UI plus 0.1% Employment Training Tax, both on the first $7,000 (EDD DE 202). SDI (1.3%) is employee-paid.
Minimum wage: Many cities set higher local minimums.
Estimate, not final: California is on the DOL's potential 2026 FUTA credit-reduction list. We use the expected 1.5% reduction (FUTA 2.1%, about $147 per employee); it would be 5.3% (about $413) if the 3.8% add-on waiver is refused. The DOL confirms the final list after November 10, 2026.
2What this employee costs you
Frequently asked questions
How much does it cost to hire an employee in California?
A full-time worker at $19.00/hour ($39,520 a year) with 10 PTO days costs about $43,670 a year before benefits: employer payroll tax $3,023, FUTA $147, California unemployment $245 and typical workers' comp $735. That's $21.84 per hour worked.
What is the California SUTA rate for new employers in 2026?
3.5% on the first $7,000 of each employee's wages (U.S. DOL, January 2026). 3.4% new-employer UI plus 0.1% Employment Training Tax, both on the first $7,000 (EDD DE 202). SDI (1.3%) is employee-paid.
What is the California minimum wage in 2026?
$16.90 per hour. Many cities set higher local minimums.
How much is workers' comp in California?
The 2024 Oregon premium-rate study puts California's all-industry index rate at $1.86 per $100 of payroll (rank 4 of 51; national median $1.09). Your real rate depends on job class and claims history.
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