Employee Cost in Massachusetts
Updated June 2026 · Total employer cost calculator
$68,850
Entry Level Total
$151,470
Mid-Level Total
$229,500+
Senior/Mgr Total
Calculate Total Employee Cost in Massachusetts
Base Salary—
Payroll Taxes (FICA + FUTA + SUTA)—
Benefits—
Workers' Comp—
Total Annual Cost—
Cost multiplier vs. salary—
Total Employee Cost in Massachusetts by Salary
| Annual Salary | Payroll Taxes | +Std Benefits | Total Cost |
|---|---|---|---|
| $47,250 | $5,174 | $8,505 | $60,929 |
| $74,250 | $8,130 | $13,365 | $95,745 |
| $101,250 | $11,087 | $18,225 | $130,562 |
| $128,250 | $14,043 | $23,085 | $165,378 |
| $168,750 | $18,478 | $30,375 | $217,603 |
Total Hiring Cost by Job Type — Massachusetts
Workers' compensation insurance rates vary dramatically by job classification, significantly affecting total employer cost. Rates based on $114,750 median salary in Massachusetts.
| Job Type | WC Rate | WC Cost | Total/yr |
|---|---|---|---|
| Office / Administrative | ~$0.40/$100 | $459 | $148,429 |
| Retail / Customer Service | ~$1.20/$100 | $1,377 | $149,347 |
| Restaurant / Food Service | ~$3.00/$100 | $3,443 | $151,413 |
| Trades / Light Warehouse | ~$6.00/$100 | $6,885 | $154,855 |
| Construction / Heavy Labor | ~$14.00/$100 | $16,065 | $164,035 |
WC rates are approximate — actual workers' comp premiums vary by carrier, claims history, and exact classification code. Construction and trades roles can run 3–5× the total cost of equivalent-salary office roles due to WC premiums.
Hiring Costs in Massachusetts
Total employee costs in Massachusetts are above the national average. Higher wages, state taxes, and mandatory benefits push total employer costs above U.S. norms.
Employer Tax Summary for Massachusetts
- • FICA (employer share): 7.65% of gross wages
- • FUTA: 0.6% on first $7,000 of wages
- • Massachusetts SUTA: ~2.7% average (varies by experience rating)
- • Workers' comp: $0.30–$3.00+/$100 payroll (by classification)
Cost-Saving Strategies
- • Consider PEO (Professional Employer Organization) for small businesses — often reduces benefits costs 15–25%
- • Use contractors for variable workloads (ensure proper classification)
- • High-deductible health plans + HSA contributions lower health insurance costs
- • Benchmark salaries with local market data to avoid overpaying
Simplify Payroll in Massachusetts
Compare payroll software and PEO services. Automate taxes, compliance, and benefits for Massachusetts employers.
Compare Payroll Services →Frequently Asked Questions
How much does it cost to employ someone in Massachusetts?
Total employment cost in Massachusetts is 1.25–1.40× the base salary. A $114,750 salary costs employers $151,470–$166,388.
What payroll taxes does an employer pay?
FICA (7.65%), FUTA (0.6% on first $7,000), and state unemployment tax (SUTA, varies by state). Plus workers' comp insurance.
What benefits are required vs. optional?
Required: FICA, FUTA, SUTA, workers' comp. Optional: health insurance, dental, 401(k) match, life insurance.
What is the minimum wage in Massachusetts?
The minimum wage in Massachusetts is at or above the federal minimum of $7.25/hr.
How much does workers' comp insurance cost?
Workers' comp in Massachusetts typically costs $0.50–$3.00 per $100 of payroll for most office and service roles.