Payroll Tax Calculator
Calculates employer and employee payroll taxes including federal, state, and unemployment
SS + Medicare + FUTA + SUTA per employee
Per-employee cost multiplied by number of employees
Employer tax burden relative to gross wages
Frequently Asked Questions
What payroll taxes do employers pay?
Employers pay: Social Security (6.2% up to $168,600), Medicare (1.45%, no cap), FUTA (0.6% on first $7,000 per employee after state credit), and SUTA (state unemployment, typically 1-5% on the first $7,000-$56,500 depending on state).
How much does payroll tax add to employee cost?
Employer payroll taxes add roughly 8-12% on top of wages. For a $50,000 salary: ~$3,825 FICA + ~$42 FUTA + ~$210 SUTA = ~$4,077 in employer payroll taxes. This does not include benefits, insurance, or overhead.
What is the FUTA tax?
FUTA (Federal Unemployment Tax Act) is 6.0% on the first $7,000 of each employee's wages. However, employers receive up to a 5.4% credit for paying state unemployment taxes, reducing the effective FUTA rate to 0.6% ($42 per employee per year).
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