Payroll & wages
Employer payroll tax calculator
Estimate employer payroll taxes for one W-2 employee using 2026 rates: FICA match, FUTA, and SUTA, plus optional employee withholdings. Enter annual salary or gross per pay period, or hourly rate × hours; choose your state and pay frequency to see total payroll cost per check and in the annual summary. Free — no account or wizard. Many people search payroll tax calculator when they mean take-home pay; here, employer taxes come first. Employees should use the paycheck calculator. For benefits and overhead beyond payroll taxes, try the employee cost calculator.
How to calculate payroll taxes (4 steps)
Enter gross pay
Annual salary or gross per pay period, or hourly rate × hours (plus optional overtime).
Choose state and pay frequency
State drives income tax withholding (where applicable). Pay frequency spreads annual wage-base limits across the year.
Add employer assumptions
Enter your SUTA rate % and confirm FUTA credit eligibility (default 0.6% effective FUTA).
Review results and export
Employer taxes and total payroll cost appear first. Expand employee withholdings if you need W-4 detail. Use the annual summary for hiring budgets; export CSV or PDF to share.
What is payroll tax?
Payroll taxes are taxes on wages that fund Social Security, Medicare, and unemployment insurance. They are separate from income tax, which is mostly withheld from employee paychecks based on Form W-4.
Employees pay their share of FICA plus federal and state income tax withholding (if your state has one). Employers pay matching FICA, federal FUTA, and usually state SUTA on top of gross wages. Employees with high wages may owe an additional 0.9% Medicare tax above the IRS threshold; employers do not match that surtax.
This page focuses on employer-side totals and optional withholdings. For net pay only, use the paycheck calculator; for benefits and workers' comp on top of wages, use the employee cost calculator.
What is an employer payroll tax calculator?
An employer payroll tax calculator is a planning tool that estimates how much your business owes in employer-side payroll taxes for one employee: matching FICA, federal FUTA, and state SUTA, plus total payroll cost (gross wages + those employer taxes).
It can also display employee withholdings so you can see both sides of a pay run. It does not replace a paycheck calculator (net pay focus) or a cost-to-hire model with benefits and workers' comp — those live on dedicated Ordio tools linked below.
Payroll tax calculator vs paycheck calculator
US search results often mix paycheck calculators (take-home pay) with employer payroll tax tools. Use the right one so employer FICA, FUTA, and SUTA are not confused with what an employee brings home.
| Your goal | Best Ordio tool |
|---|---|
| Net pay, W-4, pay-stub PDF | Paycheck calculator |
| Employer FICA, FUTA, SUTA, total payroll cost, annual summary | This payroll tax calculator |
| Benefits, workers' comp, overhead % on top of wages | Employee cost calculator |
| Convert salary ↔ hourly gross only | Hourly wage calculator |
Reuse the same gross pay and state via URL parameters — see SUTA rates and state defaults below for examples.
2026 payroll tax rates (reference)
| Tax | Employee | Employer |
|---|---|---|
| Social Security (2026) | 6.2% on wages up to $184,500 | 6.2% match (same wage base) |
| Medicare | 1.45% (+0.9% high earners) | 1.45% match |
| FUTA | — | 0.6% typical (after credit) on first $7k |
| SUTA | Rare (AK, NJ, PA) | Your state rate % |
Sources: IRS Publication 15 (employer taxes), Social Security wage base (2026), and IRS Pub 15-T for income tax withholding in the results panel.
Employer vs employee payroll tax responsibilities
| Tax type | Who pays | Typical 2026 notes |
|---|---|---|
| Social Security | Employee + employer (match) | 6.2% each up to $184,500 wages |
| Medicare | Employee + employer (match) | 1.45% each; +0.9% employee on high wages |
| Federal income tax | Employee (withheld) | W-4 / Pub 15-T tables |
| State income tax | Employee (withheld) | Varies; none in TX, FL, NV, etc. |
| FUTA | Employer | ~0.6% after credit on first $7k per employee |
| SUTA | Employer (usually) | Your experience-rated %; wage base varies |
The calculator shows employer taxes first, then optional employee withholding detail. All figures are estimates for budgeting — not tax filings or deposit schedules.
Employer payroll tax responsibilities (FICA, FUTA, SUTA)
As the employer, you are responsible for taxes on top of the employee's gross pay — even when the employee's share is withheld from their check.
- Match FICA — employer Social Security (6.2% up to the annual wage base) and Medicare (1.45%) on the same wages as the employee, subject to YTD caps.
- Pay FUTA — federal unemployment on the first $7,000 of each employee's wages per year (often 0.6% after the state credit).
- Pay SUTA — state unemployment at your workforce agency rate until the state wage base is met.
- Withhold and remit — federal and state income tax plus employee FICA from wages; you deposit them on IRS and state schedules. This tool shows withholdings for planning only.
This page does not model health insurance, retirement match, or workers' comp — use the employee cost calculator for that layer.
Annual summary, CSV, and PDF export
Choose Annual salary to enter one full-year number. The calculator divides gross across your pay frequency and shows annual gross wages, annual employer taxes, employee taxes withheld, and annual total payroll cost in the summary below the per-period cards.
Export CSV or PDF to share a hiring scenario with finance or HR. Exports include per-period lines and annual employer tax totals when annual mode is on — for internal planning, not IRS or state filings.
SUTA rates and state defaults
SUTA (state unemployment insurance) depends on your experience rating — new employers often start at a published "new employer" rate, then move up or down based on claims history. Each state sets its own taxable wage base (maximum wages SUTA applies to per year). When you change state in the calculator, we prefill an illustrative rate and wage base from our 2026 reference table; replace both with values from your state notice before you rely on the numbers.
If SUTA is left at 0%, you will see a warning and employer lines will exclude SUTA until you enter a rate — useful when you only want FICA and FUTA quickly.
Coming from the paycheck calculator? Prefill this tool with ?gross=800&state=TX, ?annual=75000&state=TX&frequency=biweekly, or hourly ?hourly=25&hours=80&state=CA.
YTD gross and wage-base caps
Some payroll taxes stop once an employee hits an annual wage cap. Enter YTD gross before this check under employer assumptions so FICA, FUTA, and SUTA scale correctly on this pay run.
| Cap (2026) | What happens when YTD exceeds it |
|---|---|
| Social Security $184,500 | No further employee or employer Social Security on this check |
| FUTA $7,000 | Employer FUTA drops to $0 for the rest of the year |
| SUTA (state wage base) | Employer SUTA stops once YTD hits your state taxable maximum |
Example: an employee who already earned $183,000 YTD and receives a $5,000 monthly check will only pay Social Security on $1,500 of that check toward the $184,500 limit. Employee Medicare has no wage cap; employer Medicare matches on all covered wages.
California payroll taxes (example)
California employers need state income tax withholding on the employee side plus employer FICA, FUTA, and SUTA. Illustration: $5,000 gross per month, single filer, 3% SUTA, YTD $0 (run your own rate in the calculator above).
| Line (per month) | Approx. amount |
|---|---|
| Employer FICA match | ~$383 |
| Employer FUTA + SUTA (illustrative) | ~$25–$40 depending on YTD |
| CA state income tax withheld | ~$159 |
| Federal income tax + employee FICA | Expand withholdings in results |
Select CA and your real SUTA rate for your pay frequency. City local taxes (e.g. some SF payroll taxes) are not auto-loaded — add optional flat local % in advanced withholding. No state income tax? Use the Texas examples below.
Worked example: $800 biweekly in Texas
On $800 gross per biweekly period in Texas (no state income tax), with 2.7% SUTA and standard FUTA credit, employer taxes are about $87.60 per period — roughly $61.20 employer FICA match, $4.80 FUTA, and $21.60 SUTA. Total payroll cost (gross + employer taxes) is about $887.60 before you fund employee net pay.
Select TX, biweekly pay, and $800 per period in the calculator to reproduce these employer lines; expand withholding for federal income tax and employee FICA.
Worked example: $60,000 and $75,000 annual salary (Texas)
| Annual salary | Gross per biweekly check | Employer taxes / period | Employer taxes / year (est.) |
|---|---|---|---|
| $60,000 | ~$2,308 | ~$253 | ~$6,570 |
| $75,000 | ~$2,885 | ~$316 | ~$8,213 |
Assumptions: Texas, single filer, biweekly pay, illustrative 2.7% SUTA, FUTA state credit on, YTD $0. Use Annual salary input mode for the same math. Annual totals appear in the annual summary band after you calculate.
Texas employer payroll taxes
Texas has no state income tax on wages, so checks still show federal income tax and FICA, but not Texas wage withholding. Employers pay matching FICA, FUTA, and Texas unemployment (SUTA) — use your Texas Workforce Commission rate; the calculator prefills an illustrative default until you enter yours.
The worked examples on this page use Texas so employer lines are easy to compare. The same employer taxes apply in Florida, Nevada, and other no-income-tax states; only withholding and SUTA rates change when you pick another state.
Accurate hours, cleaner payroll runs
Payroll tax estimates are only as good as gross wages. Shift-based businesses often leak margin when rounded punches, missed overtime, or last-minute schedule changes hit payroll before anyone reviews totals.
Ordio connects time tracking and scheduling so hours exported to payroll match what was planned and worked — cleaner inputs for calculators like this and fewer rework cycles after pay runs.
Limitations
This tool does not file Form 941, state unemployment returns, or remit federal or state deposits. It does not calculate workers' compensation, health premiums, HSA/FSA, or 401(k) employer match. 1099 contractors and self-employment tax are out of scope.
SUTA defaults are illustrative; wage bases and rates change — follow your state workforce agency notice. City and local payroll taxes are not built in; you can add an optional flat local % in advanced withholding as a rough estimate only.
For cost to hire with benefits %, use the employee cost calculator. For definitions and labor cost % of revenue, see the labor cost glossary. Results are estimates for planning — not tax, legal, or payroll advice.
More free tools
Discover more calculators for time tracking, payroll, and HR.
Frequently asked questions about Payroll & wages
How to calculate payroll tax?
Start with gross wages for the pay period. Add employer taxes (matching FICA, FUTA on the first $7,000 per employee per year after the usual state credit, and SUTA at your rate) to get total payroll cost. Employee withholdings reduce net pay but are not part of employer cost. Enter pay, state, and SUTA % in the calculator to apply 2026 wage bases automatically.
What percentage do you pay for payroll taxes?
On typical wages below the 2026 Social Security cap, FICA is 7.65% each for the employee and the employer (15.3% combined on those wages). Employers also pay FUTA and SUTA, which are smaller as a % of gross but matter for total payroll cost. Income tax withholding is separate and varies by W-4 and state. See the rate cards in your results for this scenario.
What are the employer payroll tax rates for 2026?
2026 employer shares: Social Security 6.2% (match, up to $184,500 wages), Medicare 1.45% (match), FUTA ~0.6% after credit on the first $7,000 per employee, plus SUTA at your state rate. Employee income tax withholding is separate and shown under employee withholdings.
How much tax is taken out of a payroll check?
From an employee's check, typical withholdings are federal income tax, state income tax (if any), Social Security, and Medicare. Expand employee withholdings in the results on this page, or use the paycheck calculator for pay-stub layout and PDF export.
How to calculate how much tax is deducted from a paycheck?
Deductions depend on gross pay, pay frequency, Form W-4, and state rules. Use the paycheck calculator for net pay focus, or expand Withholding (W-4) here to see federal, state, and FICA lines alongside employer taxes.
How to calculate the employer's payroll taxes?
On each pay run, calculate employer FICA (6.2% Social Security up to the wage base + 1.45% Medicare match), FUTA on wages still subject to the $7,000 annual cap, and SUTA at your state rate up to your state wage base. Add those employer taxes to gross wages for total payroll cost. Enter your SUTA rate — prefilled defaults are illustrative only.
What is the formula for calculating payroll taxes?
Total payroll cost ≈ gross wages + employer FICA + FUTA + SUTA. Employee net pay = gross − withholdings − deductions. This page computes both sides so you can budget cash for each pay run.
How much do employers have to pay for payroll taxes?
Below the Social Security wage base, employer FICA alone is about 7.65% of gross each pay period. Add FUTA (often a few dollars per employee per year after the $7k base) and SUTA at your rate. Example: $75,000 annual salary in Texas (biweekly) is roughly $316 employer taxes per check and about $8,213 per year in the annual summary.
How do I calculate payroll taxes in Texas?
Select Texas — there is no state income tax on wages. Employers still pay matching FICA, FUTA, and Texas SUTA. Enter your TWC unemployment rate (the tool prefills an illustrative default). Employee checks still show federal income tax and employee FICA.
What is the difference between payroll tax and income tax?
Payroll taxes fund Social Security, Medicare, and unemployment insurance — employees and employers each pay prescribed shares on wages. Income tax funds general government budgets and is withheld mainly from employees using Form W-4 and tax brackets; employers remit it but usually do not pay income tax on wages themselves.
Who pays FUTA vs SUTA?
FUTA is a federal employer unemployment tax (first $7,000 per employee). SUTA is state unemployment insurance — usually employer-paid; Alaska, New Jersey, and Pennsylvania also have employee SUTA in some cases.
Does this replace Form 941 or my payroll provider?
No. This is a free estimator for budgeting and hiring math. Federal deposits, quarterly Form 941, state unemployment filings, and pay stubs still belong in your payroll software or with a qualified advisor.
Should employees use this calculator or the paycheck calculator?
Employees should use the paycheck calculator for take-home pay. Employers use this page for employer taxes and total payroll cost. You can open it with the same gross and state after the paycheck tool — for example ?gross=800&state=TX or ?annual=75000&state=TX.
What is total payroll cost vs gross wages?
Gross wages are what you pay the employee before their withholdings. Total payroll cost here means gross plus employer payroll taxes (FICA match, FUTA, SUTA) — the employer's cash burden for the pay run excluding employee net pay.
Does this work for 1099 contractors?
No. This calculator is for W-2 employees. Contractors generally handle self-employment tax themselves; you typically do not withhold payroll taxes on 1099 payments.
Is this a free employer payroll tax calculator?
Yes. Use this free employer payroll tax calculator to estimate FICA match, FUTA, SUTA, total payroll cost, and optional withholdings — with an annual summary in salary mode. Export CSV or PDF; no sign-up. For employee take-home pay only, use the paycheck calculator.
How do California payroll taxes work in this calculator?
Choose California to include CA income tax withholding plus employer FICA, FUTA, and your SUTA rate. City payroll taxes are not built in — add an optional flat local % in advanced withholding if needed. See the California payroll taxes (example) section on this page for sample monthly numbers.