A payroll tax calculator helps employers estimate the true cost of hiring by calculating Social Security, Medicare, FUTA, and state unemployment taxes owed on top of employee wages. Understanding these employer-side obligations is essential for budgeting, setting prices, and making informed hiring decisions.
Payroll Details
Gross annual wages per employee
Employees at this salary level
Employer Payroll Tax Breakdown (Per Employee)
Employer vs Employee Share
Per-Paycheck Breakdown (Employer Cost)
Annual Totals
Estimate only. This calculator uses 2026 federal rates and approximate state SUTA rates. Actual SUTA rates depend on your employer experience rating and state-specific rules. Does not include local taxes, workers' compensation, or benefits costs. Consult a payroll professional or CPA for exact figures.
How to Use This Payroll Tax Calculator
Hiring employees costs more than just their salary. Employers are responsible for paying several payroll taxes on top of wages, including Social Security, Medicare, federal unemployment (FUTA), and state unemployment (SUTA). These taxes typically add 8-12% to your total labor cost. This calculator breaks down every component so you can budget accurately before hiring.
Step 1: Enter the Annual Salary
Enter the gross annual salary for the position you are budgeting. This is the employee's total pre-tax compensation before any deductions. If you have hourly employees, multiply their hourly rate by expected annual hours (e.g., $25/hour x 2,080 hours = $52,000).
Step 2: Set the Number of Employees and State
Enter how many employees are at this salary level to see your total payroll tax obligation. Select your state to get an approximate SUTA (state unemployment tax) calculation. Each state has different SUTA rates and wage bases — the calculator uses typical new-employer rates which vary from about 1% to 5.4% depending on the state.
Step 3: Choose Your Pay Frequency
Select weekly, bi-weekly, semi-monthly, or monthly to see per-paycheck employer costs. The per-paycheck breakdown shows how much you owe in employer taxes with each pay period, which is helpful for cash flow planning and payroll budgeting. Note that Social Security tax stops once an employee's wages exceed the $184,500 wage base for 2026.
Understanding the Tax Components
Social Security (6.2%) and Medicare (1.45%) are split equally between employer and employee — together they make up FICA taxes. FUTA is 0.6% (after the standard credit) on only the first $7,000 of wages per employee, resulting in a maximum of $42 per employee per year. SUTA varies significantly by state and by your claims history. New employers typically pay a standard rate that decreases over time with a clean record.
Employer vs Employee Comparison
Toggle the "Show employee portion" option to see the full picture of FICA taxes. While both sides pay the same Social Security and Medicare rates, only employees pay the Additional Medicare Tax (0.9%) on wages over $200,000. This view helps you understand total compensation costs and is useful when comparing W-2 employment against 1099 contractor arrangements.
FAQ
What payroll taxes does an employer pay?
Employers pay several payroll taxes on top of employee wages: 6.2% Social Security tax on wages up to $184,500 (2026), 1.45% Medicare tax on all wages, 0.6% FUTA (Federal Unemployment Tax) on the first $7,000 per employee, and state unemployment tax (SUTA) that varies by state. These employer-side taxes typically add 8-12% to total labor costs.
Is this payroll tax calculator free?
Yes, this calculator is completely free with no signup or account required. All calculations run locally in your browser — your payroll data is never sent to any server or stored anywhere. Use it as many times as you need for budgeting and planning.
What is the Social Security wage base for 2026?
The Social Security wage base for 2026 is $184,500. Both employers and employees pay 6.2% Social Security tax only on wages up to this limit. Once an employee earns more than $184,500, neither the employer nor employee owes additional Social Security tax for the rest of the year. Medicare tax, however, has no wage cap.
What is the difference between FUTA and SUTA?
FUTA (Federal Unemployment Tax Act) is the federal unemployment tax at 6.0%, but employers receive a credit of up to 5.4% for paying state unemployment taxes on time, resulting in an effective rate of 0.6%. SUTA (State Unemployment Tax Act) varies by state, with rates typically ranging from 0.5% to 6% and wage bases from $7,000 to over $56,000 depending on the state and employer experience rating.
Do employers pay the Additional Medicare Tax?
No, the Additional Medicare Tax of 0.9% is paid only by employees on wages exceeding $200,000. Employers do not match this additional tax. However, employers are responsible for withholding the Additional Medicare Tax from employee paychecks once wages exceed the $200,000 threshold, regardless of filing status.
Is my payroll data private when using this tool?
Absolutely. All calculations run entirely in your browser using JavaScript. No salary figures, employee counts, or business data are ever transmitted to any server. You can disconnect from the internet and the calculator works perfectly. Your payroll information stays completely private on your device.
How do I calculate total employee cost?
Total employee cost equals gross wages plus employer-side payroll taxes (Social Security, Medicare, FUTA, and SUTA). For a $60,000 salary, expect to pay roughly $4,600-$6,000 in employer payroll taxes, making the total cost approximately $64,600-$66,000. This calculator breaks down each component so you can budget accurately.
What are the 2026 payroll tax rates?
For 2026, the key rates are: Social Security at 6.2% each for employer and employee (12.4% total) on wages up to $184,500; Medicare at 1.45% each (2.9% total) on all wages; Additional Medicare at 0.9% employee-only above $200,000; and FUTA at 0.6% on the first $7,000 per employee. State unemployment rates vary by state and employer history.