Payroll Tax Calculator
Calculate the true cost of hiring an employee. See employer taxes including FICA, FUTA, and SUTA—know exactly what you'll pay beyond salary.
For SUTA rate calculation
Employer Taxes
$6,018
per year
True Cost
$81,018
salary + taxes
Employer Taxes
Employer portion
Employer portion
Federal unemployment
State unemployment
Per-Period Costs
Additional Costs
This calculator shows payroll taxes only. Additional employer costs may include health insurance ($7K-15K/year), 401(k) match, workers' comp, and other benefits.
What This Calculator Includes
FICA Taxes
Social Security + Medicare
FUTA Tax
Federal unemployment
SUTA Tax
State unemployment
True Cost
Total employer expense
Why Use This Calculator?
Budget Accurately
Know the true cost of hiring before making offers or budgeting for new positions
Plan Cash Flow
Understand payroll tax obligations to avoid cash flow surprises
Stay Compliant
Calculate taxes correctly using current IRS and state tax rates
Employer FICA Match: Social Security and Medicare Tax Obligations
Under the Federal Insurance Contributions Act (FICA), employers must match their employees' Social Security and Medicare taxes dollar-for-dollar. For the 2026 tax year, the combined FICA rate is 15.3% (7.65% employee + 7.65% employer):
| Tax | Employee Rate | Employer Rate | Wage Base |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% | 0% (employee only) | Over $200,000 single |
The Social Security wage base of $184,500 means both the employer and employee stop paying the 6.2% once the employee's cumulative wages reach that threshold. For an employee earning exactly $184,500, the employer pays $11,439 in Social Security tax plus $2,675 in Medicare tax = $14,114 in FICA. The Additional Medicare Tax of 0.9% is paid only by the employee on wages exceeding $200,000 (single) or $250,000 (MFJ) -- the employer does not match this portion.
FUTA and SUTA: Federal and State Unemployment Taxes
Employers pay federal unemployment tax (FUTA) at a gross rate of 6.0% on the first $7,000 of each employee's wages under IRC Section 3301. However, employers in states with compliant unemployment programs receive a 5.4% credit, reducing the effective FUTA rate to just 0.6%. Maximum FUTA per employee: $42/year.
State Unemployment Tax Act (SUTA) rates vary dramatically by state and employer experience:
| State | New Employer Rate | Taxable Wage Base | Rate Range |
|---|---|---|---|
| California | 3.4% | $7,000 | 1.5% - 6.2% |
| New York | 4.1% | $12,500 | 2.1% - 9.9% |
| Texas | 2.7% | $9,000 | 0.31% - 6.31% |
| Florida | 2.7% | $7,000 | 0.1% - 5.4% |
| Washington | varies | $67,600 | 0.27% - 6.02% |
Experience-rated employers see lower SUTA rates as they maintain a stable workforce. New employers typically pay a state-assigned default rate for the first 2-3 years. Washington state has the highest taxable wage base at $67,600, meaning SUTA can exceed $4,000 per employee there.
Form 941 Quarterly Filing and W-2 / W-3 Requirements
Employers must file Form 941 (Employer's Quarterly Federal Tax Return) every quarter to report wages, tips, federal income tax withheld, and FICA taxes. The deadlines are April 30 (Q1), July 31 (Q2), October 31 (Q3), and January 31 (Q4) of the following year.
Key annual filing requirements include:
- Form W-2: Issued to each employee by January 31 showing wages, federal/state tax withheld, Social Security and Medicare wages and taxes, and retirement plan contributions.
- Form W-3: Transmittal form filed with the SSA summarizing all W-2s. Due January 31 along with copies of all W-2 forms.
- Form 940: Annual FUTA tax return, due January 31. If all FUTA deposits were made on time, the deadline extends to February 10.
Payroll tax deposits follow either a monthly or semi-weekly schedule based on your lookback period liability. Employers with $50,000 or less in payroll taxes during the lookback period deposit monthly (by the 15th of the following month). Those above $50,000 deposit semi-weekly. Penalties for late deposits range from 2% to 15% of the unpaid amount depending on how late the deposit is.
Related Calculators
Official References
This calculator uses current federal and state payroll tax rates:
- IRS: Understanding Employment Taxes
Official guide to employer tax obligations
- Department of Labor: Unemployment Insurance
FUTA and SUTA tax information
- Social Security Administration: Employer Information
FICA tax rates and wage base limits
This calculator provides estimates based on 2025 tax rates. SUTA rates vary by state and employer experience rating. Consult a payroll professional for precise calculations.