Kentucky Labor Burden Calculator

Find the fully burdened labor rate in Kentucky, pre-filled with local SUI and tax estimates.

Pre-filled with Kentucky estimates: SUI 2.7% on a $11,400 wage base, state income tax ~4.0%. Edit any field below.

Social Security + Medicare (7.65%)

Federal unemployment (effective 0.6%)

Health, retirement, etc.

$37.34/hr

Fully burdened rate

24.4%

Burden added

$77,657

Annual cost

Burden breakdown

Employer FICA (Social Security + Medicare)7.7% · $2.30/hr
Federal Unemployment (FUTA)0.6% · $0.18/hr
State Unemployment (SUI)2.7% · $0.81/hr
Workers' Compensation1.5% · $0.45/hr
Benefits (health, retirement)8.0% · $2.40/hr
Overhead (PTO, equipment, admin)4.0% · $1.20/hr
Total burden24.4% · $7.34/hr

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality. Verify with a licensed accountant before relying on these figures.

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Calculating the fully burdened labor rate in Kentucky starts with federal payroll taxes and adds the state-specific pieces. Flat 4% income tax with a low SUI wage base. This calculator pre-fills Kentucky's estimated new-employer SUI rate of 2.7% on a $11,400 wage base, then lets you layer in workers compensation, benefits, and overhead.

Kentucky's estimated new-employer SUI rate of 2.7% on a $11,400 wage base caps state unemployment at $308 per employee per year, inside the typical range of $219 to $434 and the 26th highest of the 51 jurisdictions on this site. At a $30 pay rate the wage base is met in week 10, and SUI stops accruing for the rest of the year. Kentucky also taxes wages, at an estimated 4.0% effective rate, which the employee pays rather than the employer. For a staffing agency billing in Kentucky, the burden math follows the national pattern: FICA dominates, SUI matters until the wage base is met, and the workers comp class code decides the rest.

The result is the true hourly and annual cost of an employee in Kentucky: the number you need before setting a bill rate or comparing a W2 hire against a 1099 contractor.

Labor burden in states bordering Kentucky

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Kentucky Labor Burden FAQ

What is the labor burden rate in Kentucky?
In Kentucky, the employer labor burden combines federal taxes (FICA 7.65%, FUTA 0.6%) with the state unemployment (SUI) rate, estimated around 2.7% for new employers on a $11,400 wage base, plus workers compensation, benefits, and overhead. Most Kentucky employers land between 15% and 30% total burden. Every rate is editable in the calculator above.
How is the fully burdened rate calculated in Kentucky?
Add all employer costs as a percentage of the base wage, then multiply the pay rate by (1 + total burden). The calculator pre-fills Kentucky's SUI estimate and lets you adjust workers comp and benefits to match your business.
Does Kentucky have a state income tax?
Yes. Kentucky levies a state income tax (effective rate roughly 4.0% for a typical earner). Income tax is paid by the worker and does not change the employer's labor burden. It matters for the 1099 vs W2 take-home comparison instead.
Are these numbers tax advice?
No. These are editable 2025 estimates. Kentucky SUI rates are experience-rated per employer and workers comp varies by class code. Confirm with a licensed accountant.