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Payroll Tax Calculator

Calculate the true cost of an employee beyond their salary. See FICA employer match, FUTA, SUTA by state, and workers' comp. Budget accurately for hiring.

$
Annual gross salary before any deductions
Determines SUTA rate and wage base
%
New employer default. California range: 1.5%–6.2%
%
Varies by industry. Office: ~0.5%, construction: ~5%+

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How to Use This Calculator

Employer Cost tab

Enter the employee's gross salary and select a state. The calculator shows every payroll tax you owe above salary: FICA employer match, FUTA, SUTA, and workers' comp. Expand "More options" to adjust your SUTA experience rate, workers' comp rate, and pay frequency.

Per Employee Breakdown tab

Same inputs, deeper detail. See annual, monthly, and per-paycheck costs plus a cost composition showing what percentage goes to salary vs. FICA vs. FUTA/SUTA vs. workers' comp. Use this to understand your effective overhead rate.

Hiring Calculator tab

Enter the number of employees and average salary to see your total payroll tax burden. The calculator shows per-employee averages and the marginal cost of the next hire — useful for headcount planning and budgeting.

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The Formula

Employer payroll taxes are calculated on top of the employee's gross salary:

Total Employer Tax = FICA Match + FUTA + SUTA + Workers' Comp

FICA Match = (6.2% × min(Salary, $184,500)) + (1.45% × Salary)
FUTA = 0.6% × min(Salary, $7,000)
SUTA = Experience Rate × min(Salary, State Wage Base)
Workers' Comp = Rate × Salary

Total Employer Cost = Salary + Total Employer Tax
Effective Overhead Rate = Total Employer Tax ÷ Salary × 100

The employer matches the employee's FICA contribution (6.2% SS + 1.45% Medicare = 7.65%). The employer does NOT match the Additional Medicare Tax of 0.9% — that applies only to the employee on wages above $200,000.

FUTA is technically 6.0% on the first $7,000, but employers in states that pay SUTA on time receive a 5.4% credit, making the effective FUTA rate just 0.6%.

Example

TechStart LLC in Austin, TX hiring Sarah at $65,000

TechStart is a small startup in Texas. They're hiring Sarah as a software developer at $65,000/year. Texas SUTA new employer rate: 2.7% on $9,000 wage base. Workers' comp for office work: 0.5%.

Employer Cost Breakdown

Base salary$65,000
Social Security (6.2%)$4,030
Medicare (1.45%)$943
FUTA (0.6% on $7,000)$42
SUTA TX (2.7% on $9,000)$243
Workers' comp (0.5%)$325
Total payroll taxes$5,583
Total employer cost$70,583

Sarah's $65,000 salary actually costs TechStart $70,583 — an 8.6% overhead. For 5 employees at this salary, that's $27,915 in annual payroll taxes on top of $325,000 in salaries.

FAQ

Payroll taxes are taxes on wages that fund Social Security, Medicare, and unemployment insurance. Both employers and employees pay FICA (7.65% each). Employers additionally pay FUTA (federal unemployment), SUTA (state unemployment), and workers' compensation. This calculator focuses on the employer's share — the cost above and beyond the employee's gross salary.
FICA stands for Federal Insurance Contributions Act. Employers match the employee's contribution: 6.2% for Social Security (on the first $184,500 of wages in 2026) and 1.45% for Medicare (on all wages). Total: 7.65%. Importantly, the employer does NOT match the Additional Medicare Tax of 0.9% that employees pay on wages over $200,000 — that's the employee's burden only.
FUTA (Federal Unemployment Tax Act) is a federal tax paid only by employers. The gross rate is 6.0% on the first $7,000 of each employee's wages. However, if your state pays its unemployment loans on time, you receive a 5.4% credit, making the effective FUTA rate just 0.6%. That's a maximum of $42 per employee per year. A handful of states (called "credit reduction states") may reduce this credit.
SUTA (State Unemployment Tax Act) is a state-level unemployment insurance tax paid by employers. Rates and wage bases vary widely by state. New employers typically pay a default rate (often 2.5%–3.4%). Your rate adjusts over time based on your "experience rating" — how many former employees have claimed unemployment. States with higher wage bases (like Washington at $72,500) collect more per employee than states with low bases (like California at $7,000).
Workers' compensation is insurance that covers employee injuries and illnesses on the job. Most states require it. Rates vary dramatically by industry: office workers might pay 0.3%–0.7% of payroll, while construction workers could pay 5%–15%+. Rates also depend on your claims history. Unlike FICA and FUTA, workers' comp is technically an insurance premium, not a tax — but it's a mandatory cost of employing people.

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