Employee Cost Calculator for California Employers

A California employee cost calculator returns true cost-to-company including federal FICA (7.65% employer), FUTA (0.6% effective), CA SUI (1.5-6.2% on first $7,000), CA ETT (0.1% on first $7,000), CA SDI (1.2% on first $168,600 — paid by employee in CA but a notable wage-base item), and workers' comp (1-15% industry-rated). CA is the highest US state employer cost. The EDD's California Employer's Guide (DE 44) is authoritative.

California has the heaviest US state employer payroll stack — roughly 12-18% above gross salary versus a national average of 11-13%. The combination of high SUI ceilings, the unique Employment Training Tax, and workers' comp premiums that have not normalised since the 2003 reforms means CA employers consistently pay 1-3 percentage points more in fully-loaded payroll cost than the same hire in Texas or Florida.

The 2026 California employer cost stack: - Gross salary — base earnings before any tax - FICA Social Security: 6.2% employer match on first $184,500 (2026 SS wage base) - FICA Medicare: 1.45% employer match on all wages, plus 0.9% Additional Medicare withheld from employee above $200k single - FUTA: 6% on first $7,000 of wages, reduced to 0.6% effective rate via state UI credit - CA SUI (State Unemployment Insurance): new-employer rate 3.4% on first $7,000; experience-rated from 1.5% to 6.2% after three years - CA ETT (Employment Training Tax): 0.1% on first $7,000 — funds the CA Employment Training Panel - CA SDI (State Disability Insurance): 1.2% on all wages up to $168,600 (no employer match; withheld from employee, but a relevant CA-specific cost-of-employment item) - Workers' comp: industry-rated premiums via private carriers or State Fund; clerical class code 8810 ~$0.30 per $100 of payroll, construction 5474 ~$15+ per $100 - CA Paid Family Leave: funded through SDI, no separate employer cost

Common voluntary additions: - Health insurance: employer typically pays 70-90% of premium; CA group plans run $600-1,400/employee/month - 401(k) match: typical 3-6% Safe Harbor - Disability and life insurance: 0.5-1% of payroll - CalSavers (mandatory for employers without retirement plan, 5+ employees): no direct employer cost but admin overhead

CA-specific labor cost realities not on the payroll line: - Daily overtime: 1.5x after 8 hours/day, 2x after 12 — versus federal weekly 40-hour threshold - Meal and rest break premiums: missed break = 1 hour wages owed - Paid sick leave: minimum 40 hours/year accrual - Final paycheck on termination: due same day for involuntary, within 72 hours for voluntary

Worked example: SF SaaS hiring a senior PM at $185,000 base. Federal FICA $11,475 + FUTA $42 + CA SUI $217 (new employer) + CA ETT $7 + workers' comp 8810 $555 = $12,296 statutory loading (6.6%). Add 80% health insurance subsidy ($14,400/year), 4% 401(k) match ($7,400), disability/life ($1,200) = $35,296 total benefit and tax loading on top of gross — a 19% loading, before factoring CA-specific overtime and break-premium risk.

For specifics, see EDD's California Employer's Guide (DE 44) and the Workers' Compensation Insurance Rating Bureau's pure-premium-rate filings. Pair with /pricing-calculator and /freelance-rate-calculator/new-york for the build-vs-contract math.