Employer Payroll Tax Calculator United States
This employer payroll tax calculator adds the employer share of FICA, FUTA and optional state SUTA to a 2026 wage to show the true cost of employment.
What it does
The Employer Payroll Tax Calculator shows the true cost of employing someone for 2026: the employer share of Social Security (6.2% up to the wage base) and Medicare (1.45%), plus federal unemployment tax (FUTA, 0.6% on the first $7,000), and an optional state unemployment charge.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| Social Security (OASDI) tax rate | 0.062 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 6.2% OASDI rate is fixed by statute (IRC 3101(a)/3111(a)); unchanged for 2027. audit 2026-09-23 |
| Medicare tax rate | 0.0145 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 1.45% HI rate is fixed by statute (IRC 3101(b)(1)/3111(b)); unchanged for 2027. audit 2026-09-23 |
| Social Security (OASDI) contribution and benefit base, 2026 | 184,500 | federalregister.gov, ssa.gov | Effective 2026-01-01Auto-update: replaced dead source link |
| Net FUTA rate (0.6% after state credit) | 0.006 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 0.6% net FUTA rate (6.0% less the 5.4% credit) is fixed by statute (IRC 3301/3302); unchanged for 2027. audit 2026-09-23 |
| FUTA taxable wage base per employee | 7,000 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 7,000 FUTA wage base is fixed by statute and not indexed (IRC 3306(b)(1)); unchanged for 2027. audit 2026-09-23 |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Employer tax = min(wage, wage base) × 6.2% + wage × 1.45% + min(wage, 7000) × 0.6% + min(wage, 7000) × SUTA rate; total cost = wage + employer tax
How it works
It applies each employer tax rate to the correct base — Social Security capped at the annual wage base, Medicare on the full wage, and FUTA and SUTA on the first $7,000 — then adds them to the wage to give the total cost to employer.
Where it is used
- Budgeting the fully loaded cost of a new hire
- Comparing employee cost against a contractor rate
- Estimating quarterly federal payroll tax deposits
Worked example
Paying an employee $60,000.00 costs the employer … in payroll taxes on top of the wage, for a total cost to employer of ….
A US employer pays payroll taxes on top of each wage: the employer share of Social Security and Medicare, federal unemployment tax and usually state unemployment tax. This calculator adds them up for 2026 so you can see the full cost of a hire before you make an offer or set a budget.
The employer share of FICA
FICA, the combined Social Security and Medicare tax, is split evenly between employer and employee. The employer pays 6.2% for Social Security on wages up to the annual wage base and 1.45% for Medicare on all wages with no cap. On a $60,000 salary that is $3,720 for Social Security and $870 for Medicare, $4,590 in total. Above the wage base the Social Security part stops, so the effective FICA rate falls slightly for very high earners while Medicare continues.
Federal unemployment tax (FUTA)
Only the employer pays FUTA, which funds the federal side of unemployment insurance. The gross rate is 6.0%, but employers who pay their state unemployment contributions on time get a credit of up to 5.4%, leaving a net rate of 0.6%. FUTA applies only to the first $7,000 of each employee's wages for the year, so it comes to at most $42 per employee. The calculator uses the 0.6% net rate most employers pay.
State unemployment tax (SUTA)
Each state runs its own unemployment insurance program, funded separately from FUTA. SUTA rates are experience-rated: new employers start at a standard rate, which then moves up or down depending on how many former workers have claimed benefits. Taxable wage bases also differ by state. The calculator applies an optional SUTA rate to the first $7,000 of wages; enter your state rate if you know it, or leave it at zero to see federal taxes only.
Reading the results
Employer payroll tax is everything the employer owes on top of the wage: Social Security, Medicare, FUTA and any SUTA entered. Total cost to employer adds that to the salary. A third figure shows the federal part alone (Social Security, Medicare and FUTA), which is useful when your state rate is uncertain or handled by a payroll provider. Once a salary passes the Social Security wage base, the employer tax grows more slowly than the salary.
A worked example
Take a $60,000 salary with no state rate. Social Security is $3,720, Medicare $870 and FUTA 0.6% of $7,000, or $42. Employer payroll tax is $4,632, and the total cost is $64,632, about 7.7% above the salary. At $200,000 with a 2% SUTA rate, Social Security stops at the wage base ($11,439), Medicare is $2,900, FUTA is $42 and SUTA is $140, for employer payroll tax of $14,521.
Why the full cost matters
On a typical salary, FICA alone adds 7.65% before unemployment taxes, and Social Security is the largest part until pay passes the wage base. A role budgeted at exactly the offered salary is therefore always underfunded. Consultants and agencies that bill by the hour need this number too, because covering only the wage leaves the payroll tax unpaid.
Common mistakes to avoid
Using the 6.0% gross FUTA rate instead of the 0.6% net rate overstates FUTA tenfold. Applying FUTA or SUTA to the full salary instead of the first $7,000 is another error; both stop at that base. The employer does not match the 0.9% Additional Medicare Tax. And in a few credit-reduction states employers pay more than 0.6% FUTA in a given year, so check your state's status.
Assumptions and limitations
This is a planning estimate, not a payroll filing. It uses the 2026 Social Security and Medicare rates, the Social Security wage base and the 0.6% net FUTA rate on a $7,000 base, stored as parameters sourced from the IRS and SSA. It assumes the full FUTA state credit and does not model credit-reduction states, the employee-only Additional Medicare Tax, benefits such as health insurance or retirement matching, or workers' compensation premiums. Confirm your state unemployment rate and wage base, and check current IRS guidance before making deposits.
About This Employer Payroll Tax Calculator
Use this employer payroll tax calculator to get an instant, accurate estimate. The figures follow official IRS guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2026
Frequently asked questions
What payroll taxes does an employer pay in 2026?
Is the employer share the same as what is withheld from the employee?
How does the FUTA wage base work?
Why is the FUTA rate 0.6% and not 6%?
Does this calculator include the Additional Medicare Tax?
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