Employer Payroll Tax Calculator

Calculate total employer payroll tax burden including FICA, FUTA, and state SUTA per employee.

$

Total Annual Payroll Tax

$51,495.00

Monthly Payroll Tax

$4,291.25

Effective Rate

9.36%

Per-Employee Federal Tax

Social Security (6.2% on first $184,500)$3,410.00
Medicare (1.45%)$797.50
Employer FICA Total$4,207.50
FUTA (0.6% on first $7,000)$42.00
Total Federal Per Employee$4,249.50

Per-Employee State Tax

SUTA (3% on first $30,000)$900.00
Total State Per Employee$900.00

Company Totals

Total Cost Per Employee$5,149.50
Total Payroll (10 employees)$550,000.00
Total Annual Payroll Tax$51,495.00
Monthly Payroll Tax$4,291.25
Effective Payroll Tax Rate9.36%

Use the Employer Payroll Tax Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This Employer Payroll Tax Calculator helps businesses accurately determine their total tax burden per employee, encompassing FICA (Social Security and Medicare), FUTA, and state SUTA obligations. Understanding these costs is crucial for budgeting, compliant payroll, and strategic hiring decisions, especially with projected 2026 Social Security wage base nearing $174,000 and the Medicare tax remaining uncapped.

The calculation aggregates FICA (6.2% Social Security up to the wage base + 1.45% Medicare on all wages), FUTA (0.6% on the first $7,000 of wages, assuming no state credit reduction), and state SUTA (variable rate applied to a state-specific wage base). Each component is calculated independently based on the employee's gross wages and relevant tax thresholds.

Remember that state SUTA rates and wage bases vary significantly by state and employer experience. Also, the Additional Medicare Tax (0.9% for employees earning over $200,000) is an employee-paid tax, not an employer payroll tax burden, and is therefore excluded from this calculator's output.

Example: Calculating Employer Payroll Taxes for a California Employee in 2026

  1. 1 Input: Employee's annual gross wages: $80,000. Assume California SUTA rate of 3.4% on the first $7,000 of wages (for a new employer).
  2. 2 Calculation: <br/>FICA Social Security: $80,000 * 0.062 = $4,960 <br/>FICA Medicare: $80,000 * 0.0145 = $1,160 <br/>FUTA: $7,000 * 0.006 = $42 <br/>California SUTA: $7,000 * 0.034 = $238
  3. 3 Intermediate Result: <br/>Total FICA: $4,960 + $1,160 = $6,120 <br/>Total Federal Unemployment: $42 <br/>Total State Unemployment: $238
  4. 4 Final Result: The total employer payroll tax burden for this California employee in 2026 is $6,120 (FICA) + $42 (FUTA) + $238 (CA SUTA) = $6,400.

Source: IRS — Small Business & Self-Employed · Last updated: April 2026

Frequently Asked Questions

What payroll taxes does an employer pay in 2026? (detailed)
Employers pay 6.2% Social Security (on wages up to $184,500), 1.45% Medicare (no cap), 0.6% FUTA (on first $7,000 per employee), and state SUTA that varies by state. Total employer payroll tax burden is typically 8-12% of wages.
What is FUTA tax and how much is it?
FUTA (Federal Unemployment Tax Act) is an employer-only tax of 6.0% on the first $7,000 of each employee wages, reduced to 0.6% with the standard state credit. Maximum FUTA per employee is $42 per year.
What is the Social Security wage base for 2026?
The 2026 Social Security wage base is $184,500, meaning neither employer nor employee pays the 6.2% Social Security tax on earnings above that amount. The Medicare tax of 1.45% has no wage cap.