Employer Payroll Tax Calculator
Estimate the employer share of payroll taxes — Social Security, Medicare and FUTA — on an employee’s wages, and the true fully-loaded cost of hiring.
How it works
SS = 6.2% × wages (capped at $168,600) · Medicare = 1.45% × wages · FUTA = 0.6% × first $7,000 · SUTA = state rate × state wage base
On top of an employee’s wages, the employer pays a matching 6.2% for Social Security (up to the wage base) and 1.45% for Medicare, plus federal unemployment (FUTA, effectively 0.6% on the first $7,000 after the state credit) and state unemployment (SUTA, which varies by state and the employer’s experience rating). These are separate from the amounts withheld from the employee. Together they mean a hire costs noticeably more than the salary on the offer letter.
Worked example
For a $55,000 salary: Social Security is 6.2% × 55,000 = $3,410, Medicare is 1.45% × 55,000 = $797.50, FUTA is 0.6% × 7,000 = $42, and SUTA at 2.7% on a $7,000 base is $189 — about $4,438.50 in employer payroll tax, for a fully-loaded cost near $59,438.
Frequently asked questions
Is this the same as what is withheld from the employee?
No. This is the employer’s own share. The employee separately has 6.2% Social Security and 1.45% Medicare withheld from their pay, plus income tax withholding.
Why is FUTA only 0.6%?
The base FUTA rate is 6.0% on the first $7,000, but employers who pay their state unemployment tax on time receive a 5.4% credit, leaving a net 0.6%.
Does this include benefits?
No. This covers statutory payroll taxes only. Health insurance, retirement matching and workers’ compensation add further to the true cost of an employee.
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Educational estimate using simplified US federal rules — ignores state tax, credits and your full situation. Not tax advice; confirm with a CPA or IRS guidance.