$5,270.00
$1,232.50
$6,502.50
$5,270.00
$1,232.50
$42.00
$6,544.50
$13,047.00
$91,544.50
$5,270.00
$1,232.50
$6,502.50
$5,270.00
$1,232.50
$42.00
$6,544.50
$13,047.00
$91,544.50
The Payroll Tax Calculator computes all payroll tax obligations for both employees and employers. Payroll taxes are mandatory contributions that fund Social Security, Medicare, and federal unemployment insurance (FUTA). These taxes represent a significant cost for both workers and businesses.
In the United States, payroll taxes are split between the employee and employer. Each side pays 6.2% for Social Security (on wages up to the $168,600 wage base in 2024) and 1.45% for Medicare (on all wages). Additionally, employees earning over $200,000 pay an extra 0.9% Medicare surtax. Employers also pay FUTA (Federal Unemployment Tax) at an effective rate of 0.6% on the first $7,000 of each employee's wages.
For employers, payroll taxes are one of the largest ongoing costs beyond salaries. The employer's share adds approximately 7.65% to labor costs, plus FUTA and any state unemployment taxes. For a business with 10 employees earning $85,000 each, the employer's payroll tax burden exceeds $65,000 annually.
This calculator supports employee view (how much is taken from your paycheck), employer view (the additional cost of employment), and both sides combined (total tax burden). It also scales for multiple employees to help businesses estimate total payroll tax obligations.
Understanding payroll taxes is critical for small business owners budgeting for labor costs, HR professionals managing payroll compliance, and employees who want to understand why their take-home pay is lower than their gross salary. Self-employed individuals pay both halves — see the Self-Employment Tax Calculator for details.
The calculator computes payroll taxes as follows:
Total is multiplied by the number of employees to show the full payroll tax impact.
The total employer cost beyond salary is approximately 7.65% plus FUTA. If total payroll taxes exceed 8% of gross wages, it may be due to the additional Medicare tax on high earners. Employers should budget approximately $1.08–$1.10 for every $1.00 of salary to account for payroll taxes and benefits.
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Total payroll tax burden for one employee earning $85,000.
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10 employees at $60k — over $92k in total payroll taxes.
The combined FICA rate is 15.3% (7.65% employee + 7.65% employer). This breaks down as 12.4% for Social Security (split equally) and 2.9% for Medicare (split equally).
The 2024 Social Security wage base is $168,600. Neither employees nor employers pay Social Security tax on wages above this amount.
Employers match the employee's Social Security (6.2%) and Medicare (1.45%) contributions. However, employers do NOT pay the additional 0.9% Medicare surtax — that's employee-only on wages over $200,000.
Federal Unemployment Tax Act (FUTA) is an employer-only tax. The gross rate is 6.0% on the first $7,000 per employee, but most employers get a 5.4% credit for paying state unemployment taxes, resulting in an effective rate of 0.6%.
No. Payroll taxes (FICA) fund Social Security and Medicare and are flat-rate. Income tax funds general government operations and is progressive (rates increase with income). Both are withheld from paychecks.
Employers should add approximately 7.65% plus FUTA to base salary to estimate total labor cost. For an employee earning $80,000, the employer's payroll tax is about $6,500 annually.
Employees pay an extra 0.9% Medicare tax on wages exceeding $200,000 (single) or $250,000 (married filing jointly). Employers do not match this additional tax.
No. Unlike Social Security, which has a $168,600 wage cap, Medicare tax applies to all wages with no upper limit. High earners pay the additional 0.9% surtax.
Most employers must deposit payroll taxes either semi-weekly or monthly, depending on the size of their payroll. Annual depositors are only allowed for very small employers (under $2,500 in quarterly taxes).
Failure to deposit payroll taxes is a serious offense. The IRS imposes penalties from 2% to 15% of unpaid taxes, and responsible persons can face personal liability (Trust Fund Recovery Penalty) for the employee's share.
Roboculator Team
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