HR & work · 50 figures

Payroll Cost Statistics 2026

US employers paid an average of $49.46 per hour worked for civilian workers in June 2026, of which $15.61 went to benefits, according to the Bureau of Labor Statistics. Compensation costs rose 3.4 percent in the year to September 2026, with benefits up 3.9 percent, and Mercer's employer survey projects health benefit costs per employee to rise 8.2 percent in 2027. KFF puts the average family health premium at $28,303 in 2026, and Eurostat puts the EU average labor cost at €34.9 per hour in 2025.

Download CSV Cite this pageUpdated November 4, 2026 · 18 sources · 54/54 quotes re-checked

$49.46US employers spent an average of $49.46 per hour worked on compensation for civilian workers in June 2026.U.S. Bureau of Labor Statistics
30.0%Benefits accounted for 30.0 percent of private industry employer compensation costs in the US in June 2026, or $14.07 per hour.U.S. Bureau of Labor Statistics
3.4%US compensation costs for civilian workers rose 3.4 percent in the 12 months ending September 2026.U.S. Bureau of Labor Statistics
3.9%US benefit costs for civilian workers rose 3.9 percent in the year to September 2026, faster than wages and salaries at 3.1 percent.U.S. Bureau of Labor Statistics
$184,500Social Security tax applies to the first $184,500 of each employee's earnings in 2026.Internal Revenue Service
$28,303Average annual premiums for employer-sponsored family health coverage in the US reached $28,303 in 2026, up 5 percent from 2025.KFF
8.2%US employers expect total health benefit cost per employee to rise 8.2 percent on average in 2027, the largest increase since 2003, even after planned cost cuts, according to Mercer's survey of more than 1,800 employers.Mercer
€34.9Average hourly labor costs were an estimated €34.9 in the EU and €38.2 in the euro area in 2025.Eurostat

This page collects what it costs to employ people in the United States, with a short comparison to the EU and the UK. It covers hourly employer costs, how fast they are rising, the payroll taxes and penalties set by the IRS and the Social Security Administration, employer health premiums and 2027 cost projections, minimum wage floors and the scale of the two largest US payroll providers. Most figures describe 2025 and 2026; tax and wage floor parameters already set for 2027 are labeled as such.

The headline number for budgeting is the Bureau of Labor Statistics employer cost figure: $49.46 per hour worked for civilian workers in June 2026, with $33.85 in wages and $15.61 in benefits. In private industry the split is 70.0 percent wages and 30.0 percent benefits, so a rough rule is that every dollar of wages carries about 43 cents of benefits and legally required costs. For part-time private workers the benefit share drops to 20.0 percent, which is one reason part-time hours cost about $25.20 against $54.00 for full-time staff.

Costs are still rising, and benefits faster than pay. The BLS Employment Cost Index shows total compensation up 3.4 percent in the 12 months to September 2026, with benefits up 3.9 percent and wages up 3.1 percent, while ADP payroll data shows base pay up 3.2 percent in the year to October. Health coverage is the main driver: KFF reports family premiums of $28,303 in 2026, up 5 percent, with the worker share up 9 percent, and Mercer's survey of more than 1,800 employers projects an 8.2 percent rise in health benefit cost per employee in 2027, the largest since 2003.

Payroll taxes are the most predictable part of the bill. The IRS sets the employer share at 6.2 percent for Social Security and 1.45 percent for Medicare, the Social Security wage base is $184,500 for 2026 and $192,300 for 2027 according to the Social Security Administration, and FUTA applies 6.0 percent to the first $7,000 of each worker's wages. Late deposits are expensive: the IRS failure to deposit penalty reaches 10 percent once a deposit is more than 15 days late.

Outside the US, Eurostat estimates average hourly labor costs of €34.9 in the EU in 2025, ranging from €12.0 in Bulgaria to €56.8 in Luxembourg, with non-wage costs at 24.8 percent of the total. In the UK, the ONS reports regular pay growth of 3.7 percent and the Low Pay Commission has recommended a National Living Wage of £13.21 from April 2027. On the provider side, ADP says it pays one in six US workers and Paychex says it pays 1 in 11 US private sector workers, which shows how concentrated payroll processing is.

What an hour of employee labor costs in the US

The BLS Employer Costs for Employee Compensation survey is the standard reference for the fully loaded cost of an hour of work. It counts wages plus paid leave, insurance, retirement and legally required benefits, divided by hours actually worked. Benefits make up 30.0 percent of private sector costs, so wage rates alone understate the real cost of a hire by a wide margin. The gap between full-time and part-time costs is mostly a benefits gap: benefits are 20.0 percent of part-time costs, and paid leave alone adds $4.40 an hour for full-time private staff.

US employer cost per hour worked, by worker group, June 2026

Total compensation (wages plus benefits) per hour worked, US, June 2026, BLS ECEC.

State and local government$66.5
Private industry, full-time$54
All civilian workers$49.5
Private industry, all$46.9
Private industry, part-time$25.2

Source: U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026)

$49.46
US employers spent an average of $49.46 per hour worked on compensation for civilian workers in June 2026.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Employer costs for employee compensation for civilian workers averaged $49.46 per hour worked in June 2026, the U.S. Bureau of Labor Statistics reported today.
$15.61
Of that hourly cost for US civilian workers in June 2026, $33.85 was wages and salaries and $15.61 was benefits.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Wages and salaries averaged $33.85, while benefit costs averaged $15.61.
$46.89
Private industry employers in the US paid an average of $46.89 per hour worked in total compensation in June 2026.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Total employer compensation costs for private industry workers averaged $46.89 per hour worked in June 2026.
30.0%
Benefits accounted for 30.0 percent of private industry employer compensation costs in the US in June 2026, or $14.07 per hour.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Wages and salaries averaged $32.82 and accounted for 70.0 percent of employer costs, while benefit costs averaged $14.07 and accounted for the remaining 30.0 percent.
$66.45
State and local government employers in the US paid an average of $66.45 per hour worked in June 2026.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Total employer compensation costs for state and local government workers averaged $66.45 per hour worked in June 2026.
$54.00
A full-time private industry worker in the US cost employers an average of $54.00 per hour worked in June 2026.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Total employer compensation costs for full-time private industry workers averaged $54.00 per hour worked in June 2026.
$25.20
A part-time private industry worker in the US cost employers an average of $25.20 per hour worked in June 2026, with benefits at 20.0 percent of the total.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
Total employer compensation costs for part-time private industry workers averaged $25.20 per hour worked in June 2026. Wages and salaries averaged $20.15 and accounted for 80.0 percent of employer costs, while benefit costs averaged $5.05 and accounted for the remaining 20.0 percent.
$4.40
Paid leave cost US private employers $4.40 per hour worked for full-time staff in June 2026, 8.1 percent of total compensation.
U.S. Bureau of Labor Statistics · Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026) (Sep 2026)
Exact quote
For full-time workers, employer costs for paid leave benefits were $4.40 per hour worked and accounted for 8.1 percent of total compensation costs.

How fast compensation costs are rising

The Employment Cost Index tracks the same basket of jobs over time, so it shows pure cost growth without shifts in the mix of workers. Total compensation rose 3.4 percent in the year to September 2026, with benefits outpacing wages and union workers seeing larger increases than nonunion workers. After inflation, private wages fell 0.6 percent, which means workers felt poorer even as employer costs climbed. ADP's payroll data points the same way, with base pay up 3.2 percent and gross pay, which includes bonuses and overtime, up 4.7 percent.

12-month change in US private industry compensation costs, September 2026

Not seasonally adjusted, 12 months ending September 2026, US private industry, BLS ECI.

3.4%

3.1%

3.9%

4.3%

3.3%

Total compensationWages and salariesBenefitsUnion workersNonunion workers

Source: U.S. Bureau of Labor Statistics, Employment Cost Index, September 2026 (news release, October 30, 2026)

3.4%
US compensation costs for civilian workers rose 3.4 percent in the 12 months ending September 2026.
U.S. Bureau of Labor Statistics · Employment Cost Index, September 2026 (news release, October 30, 2026) (Oct 2026)
Exact quote
Compensation costs for civilian workers increased 3.4 percent, not seasonally adjusted, for the 12-month period ending in September 2026.
3.9%
US benefit costs for civilian workers rose 3.9 percent in the year to September 2026, faster than wages and salaries at 3.1 percent.
U.S. Bureau of Labor Statistics · Employment Cost Index, September 2026 (news release, October 30, 2026) (Oct 2026)
Exact quote
Compensation costs for civilian workers increased 3.4 percent, not seasonally adjusted, for the 12-month period ending in September 2026. Wages and salaries increased 3.1 percent, and benefit costs increased 3.9 percent over the year.
4.3%
Private sector compensation costs rose 4.3 percent for union workers and 3.3 percent for nonunion workers in the year to September 2026.
U.S. Bureau of Labor Statistics · Employment Cost Index, September 2026 (news release, October 30, 2026) (Oct 2026)
Exact quote
Within the private industry, compensation costs increased 4.3 percent for union workers and 3.3 percent for nonunion workers for the 12-month period ending in September 2026.
0.6%
After inflation, US private industry wages and salaries fell 0.6 percent in the year to September 2026.
U.S. Bureau of Labor Statistics · Employment Cost Index, September 2026 (news release, October 30, 2026) (Oct 2026)
Exact quote
Inflation-adjusted (constant dollar) wages and salaries decreased 0.6 percent over the year.
3.2%
Base pay for US private-sector workers rose 3.2 percent and gross pay 4.7 percent in the year to October 2026, according to ADP Pay Insights payroll data.
ADP · ADP National Employment Report: Private-Sector Employment Increased by 86,000 Jobs in October (Nov 2026)
Exact quote
Base pay for private-sector workers rose 3.2% and gross pay was up 4.7% year over year, according to ADP Pay Insights.

Payroll taxes and penalties employers pay

Federal payroll taxes are fixed percentages, so they are easy to budget. Employers match 6.2 percent Social Security tax up to the wage base and 1.45 percent Medicare tax with no cap, and pay FUTA on the first $7,000 of each worker's wages. The Social Security wage base rises every year with average wages, from $184,500 in 2026 to $192,300 in 2027, which raises costs for higher earners. The penalty schedule for late deposits is steep enough that the fee for a payroll service is often cheaper than a single missed deadline. State unemployment taxes and local taxes come on top and vary by location.

IRS failure to deposit penalty by days late

Penalty as a share of the unpaid payroll tax deposit, US federal rules as published by the IRS in 2026.

10%

1 to 5 days late6 to 15 days lateMore than 15 days late

Source: Internal Revenue Service, Failure to Deposit Penalty

6.2%
US employers pay Social Security tax of 6.2 percent of each employee's wages, matching the 6.2 percent withheld from the employee.
Internal Revenue Service · Topic no. 751, Social Security and Medicare withholding rates (Sep 2026)
Exact quote
The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total.
1.45%
US employers pay Medicare tax of 1.45 percent on all wages, with no wage cap.
Internal Revenue Service · Topic no. 751, Social Security and Medicare withholding rates (Sep 2026)
Exact quote
The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.
$184,500
Social Security tax applies to the first $184,500 of each employee's earnings in 2026.
Internal Revenue Service · Topic no. 751, Social Security and Medicare withholding rates (Sep 2026)
Exact quote
For earnings in 2026, this base limit is $184,500.
$192,300
The Social Security taxable maximum rises to $192,300 for earnings in 2027.
Social Security Administration · Contribution and Benefit Base (Oct 2026)
Exact quote
For earnings in 2027, this base is $192,300 .
$11,922.60
For an employee earning $192,300 or more in 2027, the employer's Social Security contribution reaches $11,922.60 for the year.
Social Security Administration · Contribution and Benefit Base (Oct 2026)
Exact quote
Thus, an individual with wages equal to or larger than $192,300 would contribute $11,922.60 to the OASDI program in 2027, and his or her employer would contribute the same amount.
6.0%
The federal unemployment (FUTA) tax rate is 6.0 percent on the first $7,000 paid to each employee in a year, before state credits.
Internal Revenue Service · Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (2026)
Exact quote
The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.
0.9%
US employers must withhold an extra 0.9 percent Additional Medicare Tax on wages above $200,000, with no employer match.
Internal Revenue Service · Topic no. 751, Social Security and Medicare withholding rates (Sep 2026)
Exact quote
Employers are responsible for withholding the 0.9% Additional Medicare tax on an individual's wages paid in excess of $200,000 in a calendar year, without regard to filing status.
10%
The IRS failure to deposit penalty for payroll taxes is 10 percent of the unpaid deposit once it is more than 15 calendar days late; the 2 and 5 percent penalties for shorter delays do not stack on top.
Internal Revenue Service · Failure to Deposit Penalty (2026)
Exact quote
For example, if your deposit is more than 15 calendar days late, we don’t add a 10% penalty to the earlier 2% and 5% late penalties. Instead, in this example, your new total penalty would be 10%.

Health benefits: the fastest-rising line on the payroll bill

Employer health coverage is the single largest benefit cost for most US firms, and KFF's annual survey is the benchmark. Family premiums passed $28,000 in 2026 and rose 5 percent, faster than wages, while the worker share rose 9 percent as employers shifted cost onto staff. Mercer's employer survey points to a sharper 8.2 percent rise in cost per employee in 2027, or 11 percent before planned cuts. Small firms ask workers to pay much more toward family coverage than large firms do. These are averages across firms that offer coverage; many small employers offer none, which lowers their payroll cost but affects hiring.

$28,303
Average annual premiums for employer-sponsored family health coverage in the US reached $28,303 in 2026, up 5 percent from 2025.
KFF · 2026 Employer Health Benefits Survey (Oct 2026)
Exact quote
Annual premiums for employer-sponsored family health coverage reached $28,303 this year, 5% higher than in 2025.
$7,471
US workers paid an average of $7,471 a year toward family coverage premiums in 2026, up 9 percent or $621 from 2025.
KFF · Workers Now Pay $7,471 on Average Annually for Family Health Coverage, Up 9% or $621 from 2025 (Oct 2026)
Exact quote
Workers are paying on average $7,471 annually toward the premiums for employer-sponsored family health benefits this year, which is up 9%, or $621, from 2025, per KFF’s annual benchmark health benefits survey of large and small employers.
$9,687
Covered workers at US firms with fewer than 200 employees paid an average of $9,687 toward family coverage in 2026, $2,847 more than at large firms.
KFF · Workers Now Pay $7,471 on Average Annually for Family Health Coverage, Up 9% or $621 from 2025 (Oct 2026)
Exact quote
On average, covered workers in small firms are contributing $9,687 annually toward family coverage this year.
28%
US family premiums rose 28 percent between 2021 and 2026, close to the 27 percent rise in wages over the same period.
KFF · Workers Now Pay $7,471 on Average Annually for Family Health Coverage, Up 9% or $621 from 2025 (Oct 2026)
Exact quote
Since 2021, family premiums and workers’ contributions have risen at similar rates (28% and 26%, respectively) and are comparable to the increase in wages (27%) and inflation (24%) over the same period.
44%
Among US firms with 200 or more workers, 44 percent raised the share of premiums workers pay to offset higher projected health costs in 2026.
KFF · Workers Now Pay $7,471 on Average Annually for Family Health Coverage, Up 9% or $621 from 2025 (Oct 2026)
Exact quote
Among large firms with 200 or more workers, most say that they increased costs for workers to address higher projected health costs, including by increasing the share of premium that workers pay (44%) and by increasing deductibles or other cost-sharing for most services (21%).
$1,955
The average general annual deductible for single coverage among covered US workers was $1,955 in 2026.
KFF · 2026 Employer Health Benefits Survey (Oct 2026)
Exact quote
The average deductible among covered workers in a plan with a general annual deductible was $1,955 for single coverage.
8.2%
US employers expect total health benefit cost per employee to rise 8.2 percent on average in 2027, the largest increase since 2003, even after planned cost cuts, according to Mercer's survey of more than 1,800 employers.
Mercer · Employers expect health benefit costs to jump 8.2% in 2027, and the impact will likely be felt by workers (Sep 2026)
Exact quote
According to Marsh’s analysis of responses from over 1,800 US employers, the total health benefit cost per employee is expected to rise 8.2% on average in 2027 – the highest increase since 2003 – even after accounting for planned cost-reduction measures.
11%
Without changes to their plans, US employers surveyed by Mercer expected health benefit costs to rise 11 percent on average in 2027.
Mercer · Employers expect health benefit costs to jump 8.2% in 2027, and the impact will likely be felt by workers (Sep 2026)
Exact quote
Employers said that the cost of their current plans would increase by 11%, on average, if they took no action to lower it.

Minimum wage floors in the US and UK

Wage floors set the minimum payroll cost per hour, and in the US they vary sharply by location. The federal minimum of $7.25 has not moved since 2009, but 30 states and DC set higher rates, with DC at $17.50, according to the Department of Labor. Employers must pay the highest applicable rate, so a multi-state team can face several floors at once. In the UK the Low Pay Commission has recommended a 3.9 percent rise in the National Living Wage to £13.21 from April 2027, and the Employment Allowance against employer National Insurance is the other number small employers watch most.

30
As of mid-2026, 30 US states plus DC, Guam, Puerto Rico and the Virgin Islands set minimum wages above the federal rate.
U.S. Department of Labor · Consolidated Minimum Wage Table (Jul 2026)
Exact quote
There are 30 states plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands with minimum wage rates set higher than the federal minimum wage.
$17.50
The District of Columbia has the highest minimum wage in the US at $17.50 per hour.
U.S. Department of Labor · Consolidated Minimum Wage Table (Jul 2026)
Exact quote
The District of Columbia has the highest minimum wage at $17.50/hour.
$7.25
In states without their own minimum wage law, employers covered by the Fair Labor Standards Act must pay the federal minimum of $7.25 per hour.
U.S. Department of Labor · State Minimum Wage Laws (Jul 2026)
Exact quote
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.
7
Seven US states and American Samoa have no minimum wage law or a rate below the federal minimum.
U.S. Department of Labor · Consolidated Minimum Wage Table (Jul 2026)
Exact quote
The remaining 7 states and American Samoa do not have an established minimum wage requirement or have a minimum wage below the federal minimum wage.
£10,500
The UK Employment Allowance lets eligible employers cut their employer National Insurance bill by up to £10,500 in the 2026 to 2027 tax year.
HM Revenue & Customs · Rates and thresholds for employers 2026 to 2027 (2026)
Exact quote
Employment Allowance for 2026 to 2027 is £10,500.
£13.21
The UK Low Pay Commission recommended a 3.9 percent, or 50p, rise in the National Living Wage to £13.21 an hour from April 2027.
Low Pay Commission · LPC advice to Government on 2027 minimum wage rates (Oct 2026)
Exact quote
Balancing all of these factors, we recommend a National Living Wage rate increase of 3.9 per cent (or 50p) to £13.21.

Labor costs in the EU and UK

Eurostat's hourly labor cost estimates cover firms with 10 or more employees and include wages plus non-wage costs such as employer social contributions. The EU average sits around €35 per hour, but the spread between member states is almost five to one, which drives a lot of nearshoring and remote hiring decisions. Non-wage costs are a larger share of the bill in France and Sweden than elsewhere in the EU. In the UK, ONS earnings data shows private sector pay growing more slowly than public sector pay in 2026. Eurostat figures are in euros and 2025 values are extrapolated from the 2020 Labour Cost Survey.

Hourly labor costs in euros, highest and lowest EU countries, 2025

Euros per hour, whole economy, enterprises with 10 or more employees, 2025 estimates.

Luxembourg56.8
Denmark51.7
Netherlands47.9
Euro area38.2
EU average34.9
Hungary15.2
Romania13.6
Bulgaria12

Source: Eurostat, Hourly labour costs, Statistics Explained

€34.9
Average hourly labor costs were an estimated €34.9 in the EU and €38.2 in the euro area in 2025.
Eurostat · Hourly labour costs, Statistics Explained (Mar 2026)
Exact quote
In 2025, average hourly labour costs were estimated at €34.9 in the EU and at €38.2 in the euro area .
€56.8
Hourly labor costs across EU countries ranged from €12.0 in Bulgaria to €56.8 in Luxembourg in 2025.
Eurostat · Hourly labour costs, Statistics Explained (Mar 2026)
Exact quote
Hourly labour costs ranged from €12.0 in Bulgaria to €56.8 in Luxembourg in 2025.
24.8%
Non-wage costs such as employer social contributions made up 24.8 percent of EU labor costs in 2025.
Eurostat · Hourly labour costs, Statistics Explained (Mar 2026)
Exact quote
The share of non-wage costs in the whole economy was 24.8% in the EU and 25.6% in the euro area
32.3%
France had the highest non-wage share of labor costs in the EU in 2025 at 32.3 percent, followed by Sweden at 31.7 percent.
Eurostat · Hourly labour costs, Statistics Explained (Mar 2026)
Exact quote
In 2025, non-wage labour costs were highest in France (32.3% of total labour costs) and Sweden (31.7%).
4.1%
Hourly labor costs in euro terms rose 4.1 percent in the EU and 3.8 percent in the euro area between 2024 and 2025.
Eurostat · Hourly labour costs, Statistics Explained (Mar 2026)
Exact quote
Between 2024 and 2025, hourly labour costs in the whole economy (in euro) rose by 4.1% in the EU and by 3.8% in the euro area
13.1%
Bulgaria recorded the largest rise in hourly labor costs in the euro area between 2024 and 2025, at 13.1 percent.
Eurostat · Hourly labour costs, Statistics Explained (Mar 2026)
Exact quote
The largest increases were recorded in Bulgaria (+13.1%), Croatia (+11.6%), Slovenia (+9.3%) and Lithuania (+9.2%) and the lowest in France (+2.0%) and Italy (+3.2%) followed by Spain, Cyprus and Luxembourg (all +3.5%).
3.7%
Annual growth in UK employees' average regular earnings, excluding bonuses, was 3.7 percent in June to August 2026, according to the Office for National Statistics.
Office for National Statistics · Labour market overview, UK: October 2026 (Oct 2026)
Exact quote
Annual growth in employees' average regular earnings (excluding bonuses) was 3.7% in June to August 2026 and has been relatively stable over the past six consecutive three-month periods, after a year of slowing growth.
3.0%
UK regular pay grew 3.0 percent a year in the private sector in June to August 2026, against 6.3 percent in the public sector, which the ONS says reflects the timing of pay awards.
Office for National Statistics · Labour market overview, UK: October 2026 (Oct 2026)
Exact quote
Annual average regular earnings growth was 6.3% for the public sector and 3.0% for the private sector. Public sector annual pay growth continues to be affected by variations in the timing of pay awards this year.

Who processes US payroll

Payroll processing in the US is concentrated in a few large providers, and their annual reports give a sense of scale. ADP says it pays one in six US workers and Paychex says it pays 1 in 11 private sector workers, so together they touch a large share of US paychecks. Their revenue growth also reflects price increases passed on to clients, which ADP lists among the drivers of its fiscal 2026 growth. These are company-reported figures from SEC filings, not independent market share estimates.

42 million
ADP reported serving over 1.1 million clients and paying over 42 million workers in more than 140 countries and territories in fiscal 2026.
ADP · Automatic Data Processing, Inc. Form 10-K for fiscal year ended June 30, 2026 (Aug 2026)
Exact quote
Today, we are a global leader in HR and payroll solutions, serving over 1.1 million clients and paying over 42 million workers in over 140 countries and territories.
$3.5 trillion
ADP says it pays one in six US workers and moved $3.5 trillion in fiscal year 2026.
ADP · Automatic Data Processing, Inc. Form 10-K for fiscal year ended June 30, 2026 (Aug 2026)
Exact quote
In the U.S., we pay one in six workers and moved $3.5 trillion in fiscal year 2026, giving us unique insights into the workforce and its emerging trends.
1%
ADP's Employer Services revenue growth in fiscal 2026 included a 1 percent same-store increase in pays per control, a measure of how many employees its clients pay.
ADP · Automatic Data Processing, Inc. Form 10-K for fiscal year ended June 30, 2026 (Aug 2026)
Exact quote
Employer Services' revenues increased in fiscal 2026 due to new business started from new business bookings, strong client revenue retention, an increase in pricing, a 1% year-over-year growth impact of foreign currency, an increase in interest earned on funds held for clients of $164.1 million, and an increase in our pays per control when measured on a same-store-sales basis of 1%.
770,000
ADP's PEO business, ADP TotalSource, served more than 19,000 clients and more than 770,000 worksite employees in fiscal 2026.
ADP · Automatic Data Processing, Inc. Form 10-K for fiscal year ended June 30, 2026 (Aug 2026)
Exact quote
With our cloud-based HCM software at the core, we serve more than 19,000 clients and more than 770,000 worksite employees in all 50 U.S. states.
$6.5 billion
Paychex total revenue rose 17 percent to $6.5 billion in the fiscal year ended May 31, 2026, helped by the Paycor acquisition.
Paychex · Paychex, Inc. Form 10-K for fiscal year ended May 31, 2026 (Jul 2026)
Exact quote
Total revenue increased to $6.5 billion for fiscal 2026, reflecting an increase of 17% compared to the prior year.
800,000
Paychex serves about 800,000 payroll clients, pays 1 in 11 US private sector workers and moved about $1.3 trillion in its last fiscal year.
Paychex · Paychex, Inc. Form 10-K for fiscal year ended May 31, 2026 (Jul 2026)
Exact quote
Payroll solutions: Serving approximately 800,000 payroll clients, we pay 1 in 11 U.S. private sector workers and moved approximately $1.3 trillion last fiscal year.
50%
More than half of Paychex payroll clients come from referrals by existing customers, accountants, benefit brokers and banks.
Paychex · Paychex, Inc. Form 10-K for fiscal year ended May 31, 2026 (Jul 2026)
Exact quote
More than 50% of our payroll clients come from these referral sources.

FAQ

How much does an employee cost beyond their salary?

In US private industry, benefits made up 30.0 percent of employer compensation costs in June 2026, according to the Bureau of Labor Statistics. That works out to $14.07 in benefits on top of $32.82 in wages per hour worked, or about 43 cents of benefits for every dollar of wages.

What payroll taxes does an employer pay in the US?

The IRS sets the employer share at 6.2 percent for Social Security on wages up to $184,500 in 2026 and 1.45 percent for Medicare on all wages. Employers also pay FUTA at 6.0 percent on the first $7,000 of each worker's wages before state credits, plus state unemployment taxes.

How fast are payroll costs rising?

The BLS Employment Cost Index shows compensation costs up 3.4 percent in the 12 months to September 2026, with benefits up 3.9 percent and wages up 3.1 percent. KFF reports family health premiums up 5 percent in 2026, to $28,303, and Mercer's employer survey projects health benefit costs per employee to rise 8.2 percent in 2027.

What is the Social Security wage base for 2027?

The Social Security Administration set the 2027 taxable maximum at $192,300, up from $184,500 in 2026. An employer paying a worker at or above that level contributes $11,922.60 in Social Security tax for the year.

How much does an hour of labor cost in Europe?

Eurostat estimates average hourly labor costs of €34.9 in the EU and €38.2 in the euro area in 2025. Costs ranged from €12.0 in Bulgaria to €56.8 in Luxembourg, and non-wage costs averaged 24.8 percent of the total.

What is the UK National Living Wage for 2027?

The Low Pay Commission recommended a National Living Wage of £13.21 an hour from April 2027, a 3.9 percent or 50p rise. The ONS reports that UK regular pay grew 3.7 percent a year in June to August 2026.

Methodology note

We used the latest releases available on 4 November 2026, linked to dated archive copies where the publisher overwrites the page: the BLS Employer Costs for Employee Compensation for June 2026 (released September 9, 2026) and the Employment Cost Index for September 2026 (released October 30, 2026), ADP's National Employment Report for October 2026, IRS and Social Security Administration rate pages, the Department of Labor minimum wage tables as checked on 4 November 2026, KFF's 2026 Employer Health Benefits Survey, Mercer's preliminary 2026 National Survey of Employer-Sponsored Health Plans, the Eurostat hourly labour cost article (2025 estimates, permanent revision link), the ONS labour market overview for October 2026, the Low Pay Commission's October 2026 advice, HMRC's 2026 to 2027 employer rates and the latest Form 10-K filings from ADP and Paychex. BLS cost figures are averages per hour worked and include paid leave, insurance, retirement and legally required benefits; they do not include recruiting, training or software costs. KFF figures cover firms that offer health benefits, and Mercer's 2027 figures are employer projections. Eurostat figures are in euros, cover firms with 10 or more employees and are extrapolated from a 2020 survey, so they are not directly comparable with BLS dollar figures. Provider figures are self-reported by the companies. State payroll taxes and local wage ordinances are not included. Every quote is re-fetched from the source by our checker. See how we rank and verify.

Sources

1ADP: ADP National Employment Report: Private-Sector Employment Increased by 86,000 Jobs in October
2ADP: Automatic Data Processing, Inc. Form 10-K for fiscal year ended June 30, 2026
3Eurostat: Hourly labour costs, Statistics Explained
4HM Revenue & Customs: Rates and thresholds for employers 2026 to 2027
5Internal Revenue Service: Topic no. 751, Social Security and Medicare withholding rates
6Internal Revenue Service: Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
7Internal Revenue Service: Failure to Deposit Penalty
8KFF: 2026 Employer Health Benefits Survey
9KFF: Workers Now Pay $7,471 on Average Annually for Family Health Coverage, Up 9% or $621 from 2025
10Low Pay Commission: LPC advice to Government on 2027 minimum wage rates
11Mercer: Employers expect health benefit costs to jump 8.2% in 2027, and the impact will likely be felt by workers
12Office for National Statistics: Labour market overview, UK: October 2026
13Paychex: Paychex, Inc. Form 10-K for fiscal year ended May 31, 2026
14Social Security Administration: Contribution and Benefit Base
15U.S. Bureau of Labor Statistics: Employer Costs for Employee Compensation, June 2026 (news release, September 9, 2026)
16U.S. Bureau of Labor Statistics: Employment Cost Index, September 2026 (news release, October 30, 2026)
17U.S. Department of Labor: Consolidated Minimum Wage Table
18U.S. Department of Labor: State Minimum Wage Laws

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Rankozo. (2026, November 4). Payroll Cost Statistics 2026. https://rankozo.com/payroll-cost-statistics

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