Skip to the main content.
Talk to an expert
Talk to an expert
Featured Offer
Ambitious 50 →
6 months of Hire and Engage free for businesses under 50 people.

Hey Compono!

A coach that actually gets you.

Get 10 minutes free, then $15 a month. Cancel anytime.

Get Started ≫
Free tools › Employer on-costs by country

Employer on-costs: Australia vs United States

Statutory employer on-costs in Australia and the US, side by side, with the primary source for every figure.

How do statutory employer costs compare between Australia and US?

Australia: 12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top. United States: 7.65% employer FICA up to the Social Security wage base (US$184,500), then 1.45% above it, plus small federal unemployment tax and state-rated extras. On a local salary of 100,000 that is A$12,000 (12.0%) in Australia versus US$7,692 (7.7%) in the US in fixed statutory costs.

Australia vs United States, side by side

AustraliaUnited States
The rule12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top.7.65% employer FICA up to the Social Security wage base (US$184,500), then 1.45% above it, plus small federal unemployment tax and state-rated extras.
On 60,000 (local)A$7,200 (12.0%)US$4,632 (7.7%)
On 100,000 (local)A$12,000 (12.0%)US$7,692 (7.7%)
On 150,000 (local)A$18,000 (12.0%)US$11,517 (7.7%)
Key numbersSuperannuation guarantee: 12% (max contribution base A$270,830 a year); Payroll tax: 4.75% to 6.85% by state, above thresholds; Workers compensation: Compulsory, industry-rated (state averages ~1.3-1.8%)Social Security: 6.2% up to US$184,500 (2026); Medicare: 1.45%, no cap (the 0.9% surtax is employee-only); FUTA: 0.6% of the first US$7,000 (max US$42)

Australia

The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super. Payroll tax only starts above state thresholds (NSW $1.2M of annual wages, for example), so small employers often pay none. Workers compensation is compulsory everywhere but industry-rated, averaging roughly 1.3% to 1.8% of wages.

  • Superannuation guarantee12% (max contribution base A$270,830 a year)
  • Payroll tax4.75% to 6.85% by state, above thresholds
  • Workers compensationCompulsory, industry-rated (state averages ~1.3-1.8%)
  • The super rate has stopped climbing; 12% is the legislated end state.
  • From 1 July 2026 contributions must reach the fund within 7 business days of payday.

Source: Australian Taxation Office (12% since 1 Jul 2025; Payday Super from 1 Jul 2026). Checked July 2026.

United States

The fixed federal load is FICA: 6.2% Social Security up to US$184,500 (2026) and 1.45% Medicare with no cap. The extra 0.9% Medicare tax above US$200,000 is employee-only, so it never belongs in an employer cost model. Net federal unemployment tax is US$42 a head. The variable load, state unemployment tax and workers compensation, differs by state and industry and usually outweighs FUTA many times over.

  • Social Security6.2% up to US$184,500 (2026)
  • Medicare1.45%, no cap (the 0.9% surtax is employee-only)
  • FUTA0.6% of the first US$7,000 (max US$42)
  • State-ratedSUTA + workers compensation, varies
  • Health cover is the elephant: not a payroll tax, but the ACA employer mandate applies at 50+ full-time staff and dwarfs FICA in practice.
  • BLS benefit shares are quoted against total compensation, not salary; misreading that double-counts.

Source: Social Security Administration / IRS (2026 wage base). Checked July 2026.

The maths: Australia

Salary (local)ComponentsTotal
60,000Superannuation guarantee A$7,200A$7,200 (12.0%)
100,000Superannuation guarantee A$12,000A$12,000 (12.0%)
150,000Superannuation guarantee A$18,000A$18,000 (12.0%)

Plus state payroll tax above thresholds (4.75% to 6.85%) and industry-rated workers compensation.

The maths: United States

Salary (local)ComponentsTotal
60,000Social Security US$3,720; Medicare US$870; Federal unemployment tax, net US$42US$4,632 (7.7%)
100,000Social Security US$6,200; Medicare US$1,450; Federal unemployment tax, net US$42US$7,692 (7.7%)
150,000Social Security US$9,300; Medicare US$2,175; Federal unemployment tax, net US$42US$11,517 (7.7%)

Plus state unemployment tax and workers compensation, both state- and industry-rated, and health cover under the ACA mandate at 50+ staff.

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (Australia) and True cost of an employee (US). The complete six-market picture is on the Employer on-costs by country page.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
AustraliaAustralian Taxation Office12% since 1 Jul 2025; Payday Super from 1 Jul 2026Checked July 2026
United StatesSocial Security Administration / IRS2026 wage baseChecked July 2026
Where Compono fits

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

What is the rule on employer on-costs in Australia?

12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top. The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super.

What is the rule on employer on-costs in the US?

7.65% employer FICA up to the Social Security wage base (US$184,500), then 1.45% above it, plus small federal unemployment tax and state-rated extras. The fixed federal load is FICA: 6.2% Social Security up to US$184,500 (2026) and 1.45% Medicare with no cap.

Where can I check the source figures?

The sources section below links the Australia and the US government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Fair Work Ombudsman, the US Department of Labor or your own adviser. Last reviewed July 2026.