It isn't cheap to hire workers in the state of Washington, according to a new study from the San Mateo, California-based payables automation company Tipalti.
Washington employers pay $18,349 in taxes and benefits each year for workers making the state's average annual salary of $68,740, the report said, making Washington the fourth-most expensive state to hire new employees.
Alaska was the most expensive state to hire new workers. Employees earning Alaska's average salary cost employers $18,991 in taxes and benefits each year. New York came in second ($18,946) and New Jersey was third ($18,647). California came in fifth at $18,330.
"Thanks to its relatively small population and limited competition from providers, healthcare in Alaska is the most expensive in the country. This means health insurance contributions from employers have to be higher, and Alaska has a very wide margin, with employers paying over $800 more than New York in second place," the report notes.
Mississippi, meanwhile, was the least expensive state for employers to hire employees. The average employee in Mississippi costs an employer $12,273 in taxes and benefits each year. Alabama and Arkansas were the second- and third-least expensive states to hire workers, respectively. In Alabama, the average cost to hire a worker is $12,943 each year, and it costs $12,996 in Arkansas each year. Louisiana and Tennessee rounded out the top five least-expensive states for employers to hire workers.
Health insurance was the highest cost for Washington employers, with the average employee costing employers $6,305 each year. Social Security on average costs Washington employers $4,262 each year, while federal unemployment costs $4,124.
To get its results, Tipalti said it took each state's average yearly salary and multiplied it by state and federal payroll tax rates and benefits.
