1. What is the NY State Employer Cost Calculator?

This calculator helps employers in New York state estimate the total cost of employing someone, including salary, mandatory FICA contributions, and other employment costs.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• Gross Pay — Employee's annual salary before deductions
• Employer FICA — 7.65% of gross pay (Social Security + Medicare)
• Other Employer Costs — Additional costs like benefits, insurance, etc.

Explanation: The calculator accounts for mandatory employer contributions and allows for additional employment-related expenses.

3. Importance of Calculating Employer Costs

Details: Understanding total employment costs is crucial for budgeting, pricing services, and making informed hiring decisions in New York state.

4. Using the Calculator

Tips: Enter the employee's gross annual salary and any additional employment costs (benefits, insurance, etc.). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in Employer FICA?
A: FICA includes 6.2% for Social Security and 1.45% for Medicare (total 7.65%).

Q2: Are there additional NY state employer costs?
A: Yes, NY requires additional contributions like unemployment insurance, disability insurance, and paid family leave.

Q3: What's the FICA wage base limit?
A: Social Security tax applies only to the first $168,600 (2024), while Medicare tax applies to all wages.

Q4: Should benefits be included in gross pay?
A: No, gross pay is salary/wages only. Benefits should be entered as "Other Employer Costs."

Q5: Does this include NYC-specific taxes?
A: No, this calculator covers only state-level requirements. NYC employers may have additional local taxes.