Payroll Tax Calculator
Employer and employee payroll tax.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Employer total
- $5,586.00
- Employee total
- $5,355.00
- Social Security (each)
- $4,340.00
- Medicare (employee)
- $1,015.00
- FUTA
- $42.00
- SUTA
- $189.00
Quick answer
US payroll taxes are split between employer and employee. Each side pays 6.2% Social Security on wages up to the annual wage base and 1.45% Medicare on all wages; employees also pay a 0.9% Additional Medicare Tax on wages over $200,000. Employers alone pay federal (FUTA) and state (SUTA) unemployment tax. On a $70,000 salary the employer owes $5,586 and the employee $5,355.
What the Payroll Tax calculator does
This calculator works out the federal payroll taxes on one employee's annual wages and shows who pays what: Social Security and Medicare (together called FICA) for both sides, Additional Medicare Tax withheld from the employee, and the employer-only federal and state unemployment taxes. Small-business owners use it to budget the true cost of a hire; employees use it to see what comes out of each paycheck before income tax.
It does not include federal or state income tax withholding — use the paycheck calculator for take-home pay — or benefits, workers' compensation and other employer costs, which the employee cost calculator covers.
The Social Security wage base changes every January, and state unemployment rates and wage bases vary by state and employer. Enter current figures from the Social Security Administration and your state unemployment agency before relying on the totals. If you work for yourself, you pay both halves through self-employment tax instead.
The formula
Social Security (each side) = 6.2% × min(wages, wage base) Medicare (employer) = 1.45% × wages Medicare (employee) = 1.45% × wages + 0.9% × max(0, wages − 200,000) FUTA = 0.6% × min(wages, 7,000) SUTA = state rate × min(wages, state wage base)
| Symbol | Meaning | Unit |
|---|---|---|
| wages | Annual gross wages subject to FICA (after pre-tax Section 125 deductions such as health premiums, but before 401(k) deferrals) | $ |
| wage base | Maximum earnings subject to Social Security tax for the year, set by the SSA | $ |
| 0.6% | Net FUTA rate: 6.0% minus the maximum 5.4% credit for paying state unemployment tax on time | % |
| state rate | Your SUTA experience rate, assigned by the state unemployment agency | % |
| state wage base | Earnings per employee subject to SUTA, set by each state | $ |
Rates come from the Federal Insurance Contributions Act, the Federal Unemployment Tax Act and IRS Publication 15 (Circular E). Employers must withhold Additional Medicare Tax once an employee's wages pass $200,000 in the year, regardless of filing status; the employee's final liability is settled on their tax return. Employers in a FUTA credit reduction state pay more than 0.6%, which this calculator does not model.
Worked examples
Entry-level full-time employee
A $45,000 salary in a state with a 2.7% unemployment rate on the first $7,000 of wages.
Inputs
- Annual wages45000 $
- Social Security wage cap168600 $
- State unemployment rate2.7 %
- Unemployment wage base7000 $
Result
- Employer total$3,673.50
- Employee total$3,442.50
- Social Security (each)$2,790.00
- Medicare (employee)$652.50
- FUTA$42.00
- SUTA$189.00
The employer pays $3,673.50 on top of salary and the employee has $3,442.50 withheld. The difference is the $231 of unemployment tax that only the employer pays, all of it on the first $7,000 of wages.
High earner above the Social Security wage base
A $250,000 salary using the 2025 wage base of $176,100, in a state charging 3.4% on the first $9,000.
Inputs
- Annual wages250000 $
- Social Security wage cap176100 $
- State unemployment rate3.4 %
- Unemployment wage base9000 $
Result
- Employer total$14,891.20
- Employee total$14,993.20
- Social Security (each)$10,918.20
- Medicare (employee)$4,075.00
- FUTA$42.00
- SUTA$306.00
Social Security stops at $10,918.20 each because wages above $176,100 are not taxed, but Medicare has no cap. The employee pays $102 more than the employer here: the 0.9% Additional Medicare Tax on the $50,000 above $200,000 offsets most of the employer's unemployment tax.
Part-time or seasonal worker
A worker earning $5,000 in the year, below the $7,000 FUTA and SUTA wage bases.
Inputs
- Annual wages5000 $
- Social Security wage cap168600 $
- State unemployment rate2.7 %
- Unemployment wage base7000 $
Result
- Employer total$547.50
- Employee total$382.50
- Social Security (each)$310.00
- Medicare (employee)$72.50
- FUTA$30.00
- SUTA$135.00
Because all wages fall under the unemployment wage bases, unemployment tax is a larger share of pay: the employer pays $547.50, nearly 11% of wages, against $382.50 for the employee.
Who pays which payroll tax
Employee shares are withheld from pay; the employer deposits them with its own share. The percentage rates rarely change; the Social Security wage base rises most years.
| Tax | Employee | Employer | Wage limit |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | Annual wage base set by SSA |
| Medicare (HI) | 1.45% | 1.45% | None |
| Additional Medicare Tax | 0.9% on wages over $200,000 | None | None |
| FUTA | None | 6.0%, usually 0.6% after state credit | First $7,000 per employee |
| SUTA | None in most states | State-assigned rate | State wage base |
Finding the right Social Security wage base and SUTA rate
- Social Security wage base: the SSA announces the next year's figure each October. It was $168,600 for 2024 (the calculator's default) and $176,100 for 2025; enter the figure for the year you are calculating.
- SUTA rate: new employers get a standard new-employer rate, then an experience rate based on past layoffs and claims. Your state unemployment agency mails the rate notice each year.
- SUTA wage base: ranges from $7,000 in some states to well over $50,000 in others, so it can change the result a lot. A few states, such as New Jersey and Pennsylvania, also take a small unemployment contribution from employees, which this calculator does not include.
Wages that are and are not subject to FICA
- Taxed: salary, hourly pay, overtime, bonuses and commissions (see the bonus tax calculator for withholding on bonuses), and most taxable fringe benefits.
- Still taxed for FICA: traditional 401(k) and 403(b) deferrals reduce income tax but not Social Security and Medicare wages.
- Not taxed: employee premiums for health, dental and vision coverage paid through a Section 125 cafeteria plan, and HSA contributions made through one.
- Multiple employers: each employer withholds Social Security up to the full wage base, so someone with two jobs can overpay; the excess is claimed back as a credit on the federal tax return.
How to use the Payroll Tax Calculator
- 1Enter the employee's annual gross wages. Subtract any Section 125 pre-tax health premiums, but not 401(k) deferrals.
- 2Enter the Social Security wage base for the tax year from the SSA.
- 3Enter your state unemployment tax rate and the state's taxable wage base from your rate notice.
- 4Read the employer and employee totals, and the breakdown by tax, to budget payroll or check withholding.
Frequently asked questions
What percentage of payroll taxes does an employer pay?
An employer pays 7.65% of wages in FICA (6.2% Social Security plus 1.45% Medicare), plus federal and state unemployment tax on the first part of each employee's wages. Social Security stops at the annual wage base; Medicare does not.
What is the maximum FUTA tax per employee?
With the full 5.4% state credit, FUTA is 0.6% of the first $7,000 of wages, or $42 per employee per year. Employers in a credit reduction state pay more.
Do employers pay the Additional Medicare Tax?
No. The 0.9% Additional Medicare Tax is paid only by the employee, through withholding on wages above $200,000 in a calendar year. The employer's Medicare rate stays at 1.45% on all wages.
Is payroll tax the same as income tax withholding?
No. Payroll taxes here fund Social Security, Medicare and unemployment insurance at flat rates. Income tax withholding is separate and depends on the employee's W-4, filing status and income; an income tax calculator estimates that part.
What happens when wages pass the Social Security wage base?
Social Security withholding stops for the rest of the year, for both employer and employee, so take-home pay rises in the later months. Medicare continues on every dollar.
References
- Publication 15 (Circular E), Employer's Tax Guide — Internal Revenue Service
- Contribution and Benefit Base — Social Security Administration
- Topic No. 560, Additional Medicare Tax — Internal Revenue Service
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
- Report an error