Payroll Tax Calculator
Calculate employer and employee payroll taxes including Social Security, Medicare, FUTA, and state unemployment.
See the true cost of an employee.
Payroll Tax Components (US, 2024):
Payroll taxes fund Social Security and Medicare. Both the employer and employee pay a share, and this calculator breaks down each portion.
Employee’s share:
- Social Security: 6.2% on the first $168,600 of wages (the wage base cap)
- Medicare: 1.45% on all wages with no limit
- Additional Medicare: 0.9% on wages exceeding $200,000
Employer’s share (matching):
- Social Security: 6.2% on the first $168,600
- Medicare: 1.45% on all wages
- FUTA (Federal Unemployment): 0.6% on the first $7,000
Total FICA rate: 15.3% (7.65% each for employer and employee).
What each variable means:
- Annual Gross Salary — the employee’s total pay before any deductions.
- View As — choose Employee to see what gets deducted from your paycheck, or Employer to see the true cost of hiring someone.
When to use this calculator: Employees use it to understand their paycheck deductions. Employers use it to calculate the real cost of a new hire beyond just salary.
Practical example: An employee earns $60,000 per year. The employee’s share: Social Security = $3,720 (6.2%), Medicare = $870 (1.45%), total = $4,590. The employer pays an additional $4,590 in matching taxes plus $42 in FUTA, making the true cost $64,632.
Common mistakes: Many people forget that FICA is split between employer and employee. Self-employed individuals pay both halves (15.3% total) via self-employment tax. The Social Security wage cap means high earners pay a lower effective FICA rate overall. State unemployment taxes (SUTA) are an additional employer cost not included here, as rates vary by state.