Minimum wage: No state minimum above federal; federal $7.25 applies.
2What this employee costs you
Frequently asked questions
How much does it cost to hire an employee in Texas?
A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $40,881 a year before benefits: employer payroll tax $2,864, FUTA $42, Texas unemployment $243 and typical workers' comp $292. That's $20.44 per hour worked.
What is the Texas SUTA rate for new employers in 2026?
2.7% on the first $9,000 of each employee's wages (U.S. DOL, January 2026).
What is the Texas minimum wage in 2026?
$7.25 per hour (federal minimum; no higher state rate). No state minimum above federal; federal $7.25 applies.
How much is workers' comp in Texas?
The 2024 Oregon premium-rate study puts Texas's all-industry index rate at $0.78 per $100 of payroll (rank 40 of 51; national median $1.09). Your real rate depends on job class and claims history.
Forming the business first? Texas LLC cost · S-corp calculator