Payroll Tax Calculator

Calculate employer and employee payroll taxes — FICA, FUTA, state unemployment, and federal withholding. Per-paycheck breakdowns and annual totals for all 50 states.

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How the Payroll Tax Calculator Works

This calculator helps employers estimate the full cost of payroll taxes for each employee, covering both the employer's share and the employee's withholdings. Understanding these costs is essential for budgeting, pricing, and staying compliant.

Employer FICA Taxes (Social Security & Medicare)

Employers pay 6.2% for Social Security on wages up to the $168,600 cap (2024) and 1.45% for Medicare with no wage limit. These are matched dollar-for-dollar by the employee. Use our self-employment tax calculator if you're a sole proprietor paying both sides.

FUTA (Federal Unemployment Tax)

The federal unemployment tax rate is 6.0% on the first $7,000 of each employee's annual wages. Most employers receive a 5.4% credit for timely state unemployment tax payments, reducing the effective rate to just 0.6% — a maximum of $42 per employee per year.

State Unemployment (SUTA)

Each state sets its own unemployment tax rate and wage base. Rates depend on your industry, claims history (experience rating), and how long you've been in business. New employers typically pay a standard "new employer rate." This calculator uses average rates by state.

Employee Withholdings

Employees have Social Security (6.2%), Medicare (1.45%), Additional Medicare (0.9% over $200k), and estimated federal income tax withheld. Check our paycheck calculator for a detailed take-home pay estimate or the salary converter for hourly equivalents.

Total Employer Cost

The total cost to employ someone includes gross pay plus all employer-side taxes. This "burden rate" typically adds 10–15% on top of gross wages, varying by state and salary level. Understanding this helps you budget accurately for hiring decisions.

Methodology, Assumptions, and Limitations

This payroll tax calculator estimates both employer-side and employee-side payroll taxes from the gross pay you enter, the selected pay frequency, year-to-date wages, and average state unemployment settings. It is designed to help business owners understand payroll burden, not to replace payroll software or tax filing workflows.

Limitations: the calculator does not include every local tax, paid family leave program, city payroll levy, benefit deduction, or jurisdiction-specific deposit schedule. Use it for budgeting and scenario testing, then validate with your payroll provider or accountant before filing.

Worked Example

If one employee earns $5,000 per month and has $0 year-to-date wages, the calculator estimates employer Social Security, employer Medicare, FUTA on wages still under the federal wage base, and SUTA using the selected state's average rate. It also estimates the employee-side withholdings so you can compare gross payroll, net pay, and true employer cost in the same view.

Source References

Editorial Transparency

Last updated: March 8, 2026 · Author: CalcSharp Editorial Team · Reviewed by: CalcSharp Finance Review Desk

Educational estimate only. Payroll tax filings depend on your exact payroll setup, deposit schedule, state account rate, and local jurisdiction rules.

Paycheck Calculator → Tax Bracket Calculator → Self-Employment Tax →

Frequently Asked Questions

What payroll taxes do employers pay?
Employers pay the employer share of Social Security (6.2% up to $168,600), Medicare (1.45%), FUTA (0.6% effective on first $7,000), and state unemployment insurance (SUTA) which varies by state and experience rating.
What is the Social Security wage base for 2024?
The 2024 Social Security wage base is $168,600. Both employer and employee pay 6.2% on wages up to this cap. Wages above $168,600 are not subject to Social Security tax.
How is FUTA tax calculated?
FUTA is 6.0% on the first $7,000 of each employee's wages. Most employers receive a 5.4% credit for paying state unemployment taxes on time, making the effective FUTA rate 0.6% (maximum $42 per employee per year).
Is there an Additional Medicare Tax for employers?
No. The 0.9% Additional Medicare Tax applies only to employees on wages exceeding $200,000. Employers do not pay the additional 0.9% — they continue paying only 1.45% regardless of wage level.
What is SUTA and how do rates vary?
SUTA (State Unemployment Tax Act) is the state-level unemployment insurance tax. Rates vary by state and employer experience rating, typically ranging from 0.5% to 5.4% on a taxable wage base that differs by state.
How often must payroll taxes be deposited?
Federal payroll tax deposits are typically due monthly or semi-weekly depending on your total tax liability. FUTA is deposited quarterly if liability exceeds $500. State unemployment taxes follow each state's schedule.
What is the total employer cost above gross pay?
Employers typically pay 7.65% for FICA (Social Security + Medicare) plus FUTA (about 0.6% on first $7,000) plus SUTA (varies). The total employer burden is usually 10–15% above gross wages depending on the state and wage level.

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