Payroll Tax Calculator
Estimate employer payroll taxes and total employment cost: 7.65% employer Social Security and Medicare, federal unemployment (FUTA) and state unemployment. Example: one employee paid $60,000 costs an employer about $64,821 a year.
Show steps
How to use the Payroll Tax Calculator
- Enter the annual wages for one employee.
- Enter how many employees earn that amount.
- Enter your state unemployment rate and wage base from your state notice.
- Press Calculate to see payroll tax and total employment cost.
Formula and method
Employer payroll tax = 6.2% Social Security (on wages up to $184,500 in 2026) + 1.45% Medicare + federal unemployment (0.6% of the first $7,000) + state unemployment (your rate on the state wage base). Employees pay a matching 7.65% through withholding.
Worked example: one employee paid $60,000
| Tax | Amount |
|---|---|
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (0.6% of $7,000) | $42.00 |
| SUTA (2.7% of $7,000) | $189.00 |
| Employer payroll tax | $4,821.00 |
| Total cost (wages + tax) | $64,821.00 |
Payroll tax rates at a glance
| Tax | Employer | Employee |
|---|---|---|
| Social Security | 6.2% up to $184,500 | 6.2% up to $184,500 |
| Medicare | 1.45% | 1.45% |
| Additional Medicare | None | 0.9% over $200,000 |
| FUTA | 0.6% of first $7,000 (after credit) | None |
| State unemployment | Varies by state | Usually none |
Payroll tax vs income tax withholding
Employers also withhold federal income tax from each paycheck, but that money is the employee’s tax, not an employer cost. Payroll taxes are the employer’s own share plus the amounts held from employees for Social Security and Medicare.
Frequently asked questions
What are payroll taxes?
Taxes on wages for Social Security, Medicare and unemployment insurance, split between employer and employee except for unemployment.
How much payroll tax does an employer pay?
About 7.65% for Social Security and Medicare, plus FUTA and state unemployment tax.
What is the 2026 Social Security wage base?
$184,500. Wages above that are not subject to the 6.2% Social Security tax.
What is FUTA?
The federal unemployment tax, 6.0% on the first $7,000 per employee, normally reduced to 0.6% by a credit for paying state tax on time.
Do employees pay unemployment tax?
In most states no. A few states charge employees a small amount.
What is the Additional Medicare tax?
An extra 0.9% on an employee’s wages above $200,000, withheld from the employee only.
How do I find my state rate?
Your state workforce agency sends a rate notice each year. Enter its rate and wage base here.
Sources
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