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Payroll Tax Calculator

FinancePayroll and Benefits
Tax year
Employees
NameAnnual wages ($) Remove
Employer payroll tax —
Employee FICA withheld
—
Employer + employee total
—
Total wages
—
Employer cost as % of wages
—
Where the payroll tax goes
The chart appears with your result

US federal payroll tax is 6.2% Social Security up to the wage base plus 1.45% Medicare, paid by both employer and employee, with 0.6% FUTA on the first $7,000 for the employer. On $50,000 of wages the employer pays $3,867 and $3,825 is withheld from the employee.

About this tool

Small business owners and bookkeepers often need the true cost of a hire, not just the salary. This calculator takes one row per employee with annual wages and splits federal payroll tax into the employer share and the amount withheld from pay. It applies the Social Security wage base for the year you pick, the 0.9% Additional Medicare tax above $200,000, and optionally FUTA at the 0.6% net rate. A per-employee table and a breakdown of where the money goes sit beside the totals. It covers federal employment taxes only: federal income tax withholding, state unemployment insurance and state or local taxes are not included.

How to use it

  1. Pick the tax year

    Choose 2026 or 2025; the year sets the Social Security wage base.

  2. List employees

    Enter a name and annual wages on each row, and use Add employee for more staff.

  3. Decide on FUTA

    Leave the FUTA checkbox ticked to add federal unemployment tax, or clear it to see FICA alone.

  4. Read the split

    Compare the employer cost with the employee withholding in the table and the donut chart.

Examples

One employee earning $50,000

Tax year
2025
Employees
Sam × 50000
Include federal unemployment (FUTA)
Yes

Result Employer payroll tax: $3,867.00
Employee FICA withheld: $3,825.00
Employer + employee total: $7,692.00
Total wages: $50,000.00
Employer cost as % of wages: 7.73%

  1. Social Security wage base for 2025 = $176,100.00
  2. Social Security = 6.2% × wages up to the base = $3,100.00 per side
  3. Medicare = 1.45% × all wages = $725.00 per side
  4. Additional Medicare (employee only) = 0.9% × wages above $200,000 = $0.00
  5. FUTA (employer only) = 0.6% × first $7,000 per employee = $42.00
  6. Employer total = $3,867.00; employee withholding = $3,825.00

The employer matches the $3,825 withheld from the paycheck and adds $42 of FUTA, for $3,867.

A $250,000 salary in 2025

Tax year
2025
Employees
Lee × 250000
Include federal unemployment (FUTA)
Yes

Result Employer payroll tax: $14,585.20
Employee FICA withheld: $14,993.20
Employer + employee total: $29,578.40
Total wages: $250,000.00
Employer cost as % of wages: 5.83%

  1. Social Security wage base for 2025 = $176,100.00
  2. Social Security = 6.2% × wages up to the base = $10,918.20 per side
  3. Medicare = 1.45% × all wages = $3,625.00 per side
  4. Additional Medicare (employee only) = 0.9% × wages above $200,000 = $450.00
  5. FUTA (employer only) = 0.6% × first $7,000 per employee = $42.00
  6. Employer total = $14,585.20; employee withholding = $14,993.20

Social Security stops at the $176,100 wage base, while the employee alone pays 0.9% extra Medicare on the $50,000 above $200,000.

Two part-time staff, FICA only

Tax year
2026
Employees
A × 40000; B × 30000
Include federal unemployment (FUTA)
No

Result Employer payroll tax: $5,355.00
Employee FICA withheld: $5,355.00
Employer + employee total: $10,710.00
Total wages: $70,000.00
Employer cost as % of wages: 7.65%

  1. Social Security wage base for 2026 = $184,500.00
  2. Social Security = 6.2% × wages up to the base = $4,340.00 per side
  3. Medicare = 1.45% × all wages = $1,015.00 per side
  4. Additional Medicare (employee only) = 0.9% × wages above $200,000 = $0.00
  5. Employer total = $5,355.00; employee withholding = $5,355.00

With FUTA switched off, each side pays 7.65% of the $70,000 payroll.

How it is calculated

employer = 0.062 × min(W, B) + 0.0145 × W + 0.006 × min(W, 7,000); employee = 0.062 × min(W, B) + 0.0145 × W + 0.009 × max(0, W − 200,000)

W
an employee's annual wages subject to FICA
B
Social Security wage base: $176,100 for 2025, $184,500 for 2026

Each row is taxed on its own, because the wage base and FUTA limit apply per employee. Social Security and regular Medicare are matched by the employer. The Additional Medicare tax is withheld from the employee only, starting at $200,000 of wages regardless of filing status. FUTA is 6.0% less the 5.4% state credit, leaving 0.6% on the first $7,000. Totals are summed across rows.

Sources

When not to use it

  • For running a real payroll, where federal income tax withholding and state taxes also apply.
  • For self-employed income, which uses self-employment tax on net earnings instead.
  • For employers in a FUTA credit-reduction state, where the net rate is above 0.6%.

Common mistakes

  • Including pre-tax 401(k) deferrals as exempt; they are still subject to FICA.
  • Applying the wage base to the whole payroll instead of to each employee.
  • Forgetting that the employer does not match the 0.9% Additional Medicare tax.

Frequently asked questions

What does the employer pay versus the employee?

Both pay 6.2% Social Security up to the wage base and 1.45% Medicare. The employer alone pays FUTA, and the employee alone pays the 0.9% Additional Medicare tax on wages above $200,000.

What is the Social Security wage base?

It is the cap on wages subject to the 6.2% Social Security tax, set each year by the Social Security Administration. It was $176,100 for 2025 and is $184,500 for 2026. Medicare has no cap.

Why is FUTA only 0.6%?

The gross FUTA rate is 6.0% on the first $7,000 of wages, but employers who pay state unemployment tax on time get a credit of up to 5.4%. That leaves 0.6%, or $42 per employee per year, unless the state is a credit-reduction state.

Is state unemployment tax included?

No. State unemployment insurance rates and wage bases differ by state and by employer experience rating, so they are left out. Add them separately from your state agency notice.

Does federal income tax withholding count as payroll tax here?

No. Income tax withholding depends on the employee's Form W-4 and is the employee's own tax. This calculator covers FICA and FUTA, the employment taxes in IRS Publication 15.

Does the Additional Medicare threshold depend on filing status?

For withholding, no. The employer must start withholding 0.9% once wages paid to an employee pass $200,000 in the year. The final liability on the tax return uses filing-status thresholds and may differ.

Cite this tool

Using this tool in an assignment, article or report? Copy a citation, or a link for your website.

APA

Tools Directory Editorial Team. (2026, October 24). Payroll Tax Calculator. Tools Directory. Retrieved October 28, 2026, from https://tools.milunir.com/finance/payroll-and-benefits/payroll-tax-calculator/

MLA

Tools Directory Editorial Team. “Payroll Tax Calculator.” Tools Directory, 24 Oct. 2026, https://tools.milunir.com/finance/payroll-and-benefits/payroll-tax-calculator/. Accessed 28 Oct. 2026.

Chicago

Tools Directory Editorial Team. “Payroll Tax Calculator.” Tools Directory. Last modified October 24, 2026. Accessed October 28, 2026. https://tools.milunir.com/finance/payroll-and-benefits/payroll-tax-calculator/.

Link<a href="https://tools.milunir.com/finance/payroll-and-benefits/payroll-tax-calculator/">Payroll Tax Calculator – Tools Directory</a>