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Free tools › Employer on-costs by country

Employer on-costs: New Zealand vs United States

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

How do statutory employer costs compare between New Zealand and US?

New Zealand: 3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax. 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 NZ$3,500 (3.5%) in New Zealand versus US$7,692 (7.7%) in the US in fixed statutory costs.

New Zealand vs United States, side by side

New ZealandUnited States
The rule3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax.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)NZ$2,100 (3.5%)US$4,632 (7.7%)
On 100,000 (local)NZ$3,500 (3.5%)US$7,692 (7.7%)
On 150,000 (local)NZ$5,250 (3.5%)US$11,517 (7.7%)
Key numbersKiwiSaver employer minimum: 3.5% (4% from 1 Apr 2028); ACC work levy: Industry-rated, average NZ$0.69 per NZ$100 (excl GST); Payroll tax: NoneSocial 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)

New Zealand

New Zealand is the lightest of the six on fixed employer costs: 3.5% KiwiSaver (rising to 4% in April 2028) and an industry-rated ACC work levy averaging 0.69%. ESCT is deducted from the employer contribution rather than added on top, a detail that trips up cost models. There is no payroll tax and no separate social security charge.

  • KiwiSaver employer minimum3.5% (4% from 1 Apr 2028)
  • ACC work levyIndustry-rated, average NZ$0.69 per NZ$100 (excl GST)
  • Payroll taxNone
  • ESCTDeducted from the contribution, not added to it
  • Employees can temporarily drop to 3%, which drops the employer minimum with them.

Source: Inland Revenue (3.5% from 1 Apr 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: New Zealand

Salary (local)ComponentsTotal
60,000KiwiSaver employer contribution NZ$2,100NZ$2,100 (3.5%)
100,000KiwiSaver employer contribution NZ$3,500NZ$3,500 (3.5%)
150,000KiwiSaver employer contribution NZ$5,250NZ$5,250 (3.5%)

Plus the industry-rated ACC work levy (2026/27 average NZ$0.69 per NZ$100).

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 (New Zealand) 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
New ZealandInland Revenue3.5% from 1 Apr 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 New Zealand?

3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax. New Zealand is the lightest of the six on fixed employer costs: 3.5% KiwiSaver (rising to 4% in April 2028) and an industry-rated ACC work levy averaging 0.69%.

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 New Zealand 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 Employment New Zealand, the US Department of Labor or your own adviser. Last reviewed July 2026.