📋Employer Payroll Tax Cost Calculator

Estimate the employer-side FICA and FUTA cost of hiring an employee

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FUTA applies only to the first $7,000 of wages per employee per year.

How to Use the Employer Payroll Tax Cost Calculator

When you hire an employee, you owe payroll taxes on top of their wages. The employer share of FICA is 7.65% (6.2% Social Security up to the annual wage base, plus 1.45% Medicare), matching what's withheld from the employee's paycheck. FUTA (federal unemployment tax) is 6.0% on the first $7,000 of wages per employee per year, typically reduced to an effective 0.6% with the standard state credit.

Enter the employee's monthly wage and how much they've already been paid this year to see your estimated FICA, FUTA, and total monthly employer payroll tax cost. This estimate excludes state unemployment insurance (SUTA), which varies by state and your experience rating — check your state's rate for a complete picture.

Frequently Asked Questions

What payroll taxes does an employer pay?

Employers pay a matching 7.65% FICA tax (6.2% Social Security up to the annual wage base, plus 1.45% Medicare) and 6.0% FUTA tax on the first $7,000 of wages, usually reduced to 0.6% with the standard state credit.

Is there a wage cap on Social Security tax?

Yes, Social Security tax only applies up to an annual wage base limit that's adjusted each year ($168,600 for 2024). Medicare tax has no wage cap.

Are there credits that reduce employer payroll tax cost?

Some employers may qualify for credits like the Work Opportunity Tax Credit when hiring from target groups, which offsets income tax rather than payroll tax directly, but effectively reduces the cost of hiring.