2026 Employer Payroll Tax Calculator
Estimate the true cost of your team. See employer Social Security, Medicare, FUTA, and SUTA before you hire.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Payroll Inputs
Employer Payroll Tax (Annual)
* Employer-side estimate only (does not include the employee's withheld share). 2026 rates verified against IRS Publication 15 (Circular E) and IRS Topic No. 751: Social Security 6.2% and Medicare 1.45% per side; FUTA 0.6% after the standard state credit; 2026 Social Security wage base $184,500 (SSA). SUTA rates and bases are set by each state — use your state-assigned figures. Educational use only, not tax advice.
Beyond the Salary
Budget ~7.5%–10% on top
Employer FICA alone adds 7.65% to wages. SUTA and FUTA add more, depending on your state and claims history.
State rules vary
SUTA rates and wage bases differ by state and by employer. New employers usually get a standard rate that adjusts with claims. To see how that employer cost lands as take-home pay after state tax, try PayCalcFig's salary calculator.
Plan cash flow
Payroll tax deposits are a fixed outflow. Our Cash Flow Calculator helps you schedule them.
Classify correctly
Misclassifying employees as contractors triggers penalties. Our 1099 Tax Estimator covers contractor rules.
See the employee's net paycheck
Wonder what a salary actually nets after tax? Compare with the biweekly paycheck calculator at PayCalcFig.
How to Estimate Employer Payroll Tax
- Total your gross wages. Add up all taxable wages paid to employees before any deductions (the “Total Annual Gross Payroll” input).
- Apply Social Security (6.2%). Multiply wages by 6.2%, but only up to $184,500 per employee for 2026. Wages above each employee's base are not subject to the employer Social Security tax.
- Apply Medicare (1.45%). Multiply all wages by 1.45% — there is no wage cap. (Note: Additional Medicare tax of 0.9% on wages over $200,000 is withheld from employees only and has no employer match; this calculator does not model it.)
- Add FUTA (0.6%). Apply 0.6% to the first $7,000 of each employee's wages, after the standard 5.4% state-credit reduction of the 6.0% federal rate.
- Add your state SUTA rate. Multiply your state-assigned SUTA rate by the first state wage base of each employee's wages. Find your rate and base on your state unemployment agency's notice.
Employer Payroll Tax FAQs
On top of withholding the employee's share, the employer pays a matching 6.2% Social Security and 1.45% Medicare (FICA) on wages, plus federal unemployment tax (FUTA, 0.6% after credit) and state unemployment tax (SUTA) at your state-assigned rate.
For 2026 the Social Security wage base is $184,500 (confirmed by the SSA and IRS Topic No. 751). Both the employer and employee Social Security tax (6.2% each) apply only to wages up to that amount; Medicare has no wage cap.
FUTA is the federal unemployment tax (0.6% on the first $7,000 of each employee's wages after the state-credit reduction). SUTA is the state unemployment tax, with rates and wage bases set by each state. Together they fund unemployment insurance.
No. This estimates the employer's own payroll tax cost only. Employee withholding (their half of FICA, federal income tax, etc.) is separate money you collect and remit but do not pay as an expense.
Authoritative References
- IRS Publication 15 (Circular E), Employer's Tax Guide, 2026 — employer FICA, FUTA, and wage-base rules used in this calculator.
- IRS Topic No. 751, Social Security and Medicare Withholding Rates — confirms the 2026 Social Security wage base of $184,500.
- Social Security Administration — Contribution and Benefit Base — official 2026 taxable maximum of $184,500.
- Your state unemployment insurance agency for your assigned SUTA rate and wage base.
Employer-share estimate only; excludes the employee withheld share and any state disability/paid-leave taxes. Educational information, not tax advice. Confirm figures with IRS Pub 15 and your state agency.