Payroll Tax Calculator
Estimate the employer payroll taxes on an employee's wages and the full cost of employing them, including Social Security, Medicare, FUTA and state unemployment.
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About the Payroll Tax Calculator
Employers pay payroll taxes on top of employee wages. This payroll tax calculator estimates the employer share of Social Security (6.2%) and Medicare (1.45%), federal unemployment tax (FUTA, effectively 0.6% on the first $7,000) and state unemployment tax (SUTA), then adds benefits to show the true cost of an employee. It uses the 2026 Social Security wage base of $184,500.
How to use it
- Enter the employee's annual wages.
- Enter your state unemployment rate and wage base, and any benefits or other employer costs.
- Press Calculate payroll taxes to see the taxes and total cost.
Employer payroll taxes
| Tax | Employer rate | Wage limit |
|---|---|---|
| Social Security | 6.2% | $184,500 (2026) |
| Medicare | 1.45% | No limit |
| FUTA | 0.6% after the state credit | First $7,000 |
| State unemployment (SUTA) | Varies by state and employer | Varies by state |
Cost of an employee
The true cost of an employee is wages plus employer payroll taxes plus benefits, workers' compensation, equipment and other overhead. A common rule of thumb is 1.2 to 1.4 times the base salary.
Frequently asked questions
What payroll taxes do employers pay?
Employer Social Security and Medicare taxes, federal unemployment tax (FUTA) and state unemployment tax (SUTA), plus workers' compensation in most states.
How much are employer payroll taxes?
About 7.65% of wages for Social Security and Medicare, plus unemployment taxes. SUTA rates vary by state and employer history.
What is the FUTA tax?
The Federal Unemployment Tax Act tax is 6% on the first $7,000 of wages, but most employers get a credit that brings it to 0.6%.
Do employers pay income tax withholding?
Employers withhold income tax from employee wages and send it to the IRS, but it is the employee's tax, not an employer cost.
Does this include workers' compensation?
No. Workers' comp premiums vary by industry and state. Add them in the benefits and other costs field.
Last reviewed: November 2026. Estimates only, not financial, tax or legal advice.