Payroll Tax Estimator
Calculate Employer Payroll Taxes Instantly
Use our free Payroll Tax Estimator to calculate how much you'll pay in federal and state payroll taxes for each employee. Understand your true cost per employee and plan your payroll budget more accurately.
Employee Information
Tax Settings
Employer Tax Parameters
Payroll taxes are the employer's contribution to federal and state programs such as Social Security, Medicare, and unemployment insurance. Employers are legally required to pay these taxes in addition to the employee's salary.
Components of Payroll Taxes:
- • Social Security Tax (6.2%) - funds retirement benefits
- • Medicare Tax (1.45%) - healthcare for retirees
- • FUTA (0.6%) - Federal Unemployment Tax
- • SUTA (varies) - State Unemployment Tax
- • Offer pre-tax benefits (401k, HSA, commuter programs)
- • Use accounting software to optimize contributions
- • Hire remote workers in states with lower tax rates
- • Claim tax credits for new hires or veterans
- • Implement tax-advantaged benefit plans
- • Consider outsourcing to reduce administrative overhead
Input Parameters:
- Employee Salary: $60,000
- State: California
- Social Security: 6.2%
- Medicare: 1.45%
- FUTA: 0.6%
- State Unemployment: 2.0%
Results:
- Social Security Tax: $3,720
- Medicare Tax: $870
- FUTA Tax: $420
- State Unemployment: $1,200
- Total Payroll Taxes: $6,210
- Total Employer Cost: $66,210
How do you calculate employer payroll taxes?
Employer payroll taxes are calculated as a percentage of employee wages. Add Social Security (6.2%), Medicare (1.45%), FUTA (0.6%), and state unemployment taxes to get the total employer tax burden.
What payroll taxes do employers pay in the US?
US employers pay Social Security (6.2%), Medicare (1.45%), FUTA (0.6%), and state unemployment taxes (typically 1-3%). Total employer payroll taxes usually range from 10-12% of wages.
How much are payroll taxes on a $60,000 salary?
On a $60,000 salary, employer payroll taxes typically total $6,000-7,200 annually (10-12%). This includes $3,720 for Social Security, $870 for Medicare, and $1,410-2,310 for unemployment taxes.
What is the FUTA rate in 2025?
The FUTA tax rate is 6.0% on the first $7,000 of wages, but employers receive a 5.4% credit for paying state unemployment taxes, making the effective rate 0.6% for most businesses.
Do payroll taxes vary by state?
Yes, state unemployment tax rates vary significantly by state, industry, and employer experience rating. Rates can range from 0.5% to over 5% of wages.