Employer burden
Employer burden rate explained
Employer burden rate is the percentage added on top of base salary to estimate the full cost of employing someone. It usually includes employer payroll taxes, unemployment taxes, workers compensation, benefits, and payroll administration.
Simple formula
employer_burden_rate = (total_employer_cost - salary) / salaryWhy it changes by state
Federal FICA is consistent across states, but SUTA wage bases, unemployment rates, workers compensation rules, paid leave programs, and local obligations can move the total cost materially.
When to use a range
Use ranges when you do not know your assigned SUTA rate, workers compensation class code, experience modifier, or benefits plan cost. Use custom inputs once your payroll provider or state agency gives you assigned rates.