Payroll Tax Calculator
Calculate employer and employee payroll tax obligations including Social Security, Medicare, and Federal Unemployment (FUTA) taxes.
Total Employer Cost (per employee)
—
Employer Taxes (per employee)
Social Security (6.2%)
—
Medicare (1.45%)
—
FUTA (6% on first $7,000)
—
SUTA
—
Total Employer Taxes
—
Employee Taxes (per employee)
Social Security (6.2%)
—
Medicare (1.45%)
—
Additional Medicare (0.9%)
—
Total Employee FICA
—
All Employees Combined
Total Employer Tax Burden
—
Total Payroll Cost
—
How to Use the Payroll Tax Calculator
- Enter gross wages: The annual gross pay per employee.
- Enter number of employees: How many employees at this wage level.
- Set SUTA rate: Your state unemployment tax rate (check with your state).
- Set SUTA wage base: The wage base your state uses (varies by state).
- View results: See employer and employee tax breakdowns.
Payroll Tax Rates (2026)
| Tax | Employer Rate | Employee Rate | Wage Base |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $168,600 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | N/A | 0.9% | Over $200,000 |
| FUTA | 6.0% (0.6% after credit) | N/A | $7,000 |
| SUTA | Varies by state | N/A | Varies |
Frequently Asked Questions
What is the FUTA credit reduction?
The FUTA tax rate is 6.0% on the first $7,000 of wages, but employers who pay state unemployment taxes on time receive a credit of up to 5.4%, reducing the effective FUTA rate to 0.6%. This calculator uses the standard 0.6% net rate, but some states have credit reduction adjustments.
What is the true cost of an employee?
Beyond gross wages, employers must pay their share of FICA taxes (7.65%), FUTA, SUTA, workers' compensation insurance, and often provide benefits. Total employer costs are typically 20-40% above the employee's gross salary, depending on the benefits package.
What is SUTA and how does it vary?
SUTA (State Unemployment Tax Act) rates vary by state and by employer. New employers typically receive a standard rate (often 2.7%). Your rate may increase or decrease based on your company's history of unemployment claims. Wage bases range from $7,000 (federal minimum) to over $50,000 in some states.