Employer Payroll Tax Calculator
- Wages
- Employer taxes
These are the employer's share only. Employee income tax and the employee's 7.65% FICA are withheld from pay, not added on top.
How the employer payroll tax calculation works
The payroll taxes an employer pays on top of wages: Social Security, Medicare, FUTA and state unemployment.
Social Security is 6.2% up to the wage base
On $50,000 the employer pays $3,100. Wages above the yearly wage base are not taxed for Social Security.
Medicare is 1.45% of all wages
There is no cap for the employer share. On $50,000 that is $725.
FUTA is 0.6% of the first $7,000
The 2026 FUTA rate is 6.0%, and paying state unemployment tax in full and on time earns a credit of up to 5.4%. That leaves 0.6%, or $42 per employee a year. In a credit reduction state the credit is smaller: California's 1.2% reduction for 2025 made FUTA 1.8%, or $126 per employee.
SUTA is your state rate × your state wage base
Each state sets its own rate and wage base. At 2.7% on the first $7,000 it is $189 per employee.
Worked example. For three employees each paid $50,000: Social Security $3,100, Medicare $725, FUTA $42 and SUTA $189 is $4,056 per employee, or $12,168 a year. That is 8.11% on top of wages.
Employer Payroll Tax FAQ
How much does an employer pay in payroll taxes?
7.65% of wages for Social Security and Medicare (6.2% stops at the $184,500 wage base in 2026), plus FUTA of $42 per employee in most states and your state unemployment tax. On $50,000 with a 2.7% SUTA on the first $7,000, the total is $4,056, or 8.11% of wages.
How do you calculate payroll taxes?
For each employee, multiply wages up to the Social Security wage base by 6.2%, all wages by 1.45% for Medicare, the first $7,000 by 0.6% for FUTA, and wages up to your state wage base by your SUTA rate. Add them up. Income tax and the employee's 7.65% are withheld from pay, so they are not an extra cost to you.
What is the FUTA tax rate for 2026?
6.0% on the first $7,000 of each employee's wages. Most employers get the full 5.4% credit for state unemployment tax paid on time, so they pay 0.6%, or $42 per employee.
Which states are FUTA credit reduction states?
States that have not repaid federal unemployment loans. For 2025 they were California (1.2%) and the US Virgin Islands (4.5%). Both are on the US Department of Labor's list of potential 2026 credit reduction states, and final 2026 rates are set after November 10, 2026. The extra tax is paid with Form 940 and the fourth-quarter deposit.
What is SUTA tax?
State unemployment tax, paid by the employer to fund state unemployment benefits. Each state sets your rate from your claims history and sets its own wage base. New employers usually get a standard starting rate from the state.
What payroll taxes does the employer pay versus the employee?
Both pay 6.2% Social Security and 1.45% Medicare. Only the employer pays FUTA and, in most states, SUTA. Only the employee pays income tax withholding.
What is the Social Security wage base for 2026?
$184,500. Employer and employee each pay 6.2% on wages up to that amount, so the most either side pays per employee is $11,439. Medicare has no wage base. The SSA sets the next year's figure each fall.
Do payroll taxes differ in California, Texas or New York?
Federal taxes are the same everywhere. The state part differs: each state sets its own SUTA rate and wage base, and some add other employer taxes or training funds.
Is the additional 0.9% Medicare tax paid by the employer?
No. There is no employer share. The employer must withhold 0.9% from an employee's wages above $200,000 in the calendar year, but the tax is the employee's.
Sources: IRS: Publication 15 (2026), Employer's Tax Guide · IRS: Instructions for Form 940 · US DOL: FUTA credit reductions · SSA: Contribution and benefit base · IRS: Topic 751, Social Security and Medicare withholding rates · IRS: Federal Unemployment Tax (FUTA)