Payroll Tax Calculator: US Employer Obligations
When you pay an employee, you owe employer-side payroll taxes on top of gross wages. This calculator covers the three main federal employer obligations: the employer's share of Social Security (6.2% of wages up to the annual wage base), Medicare (1.45% with no cap), and FUTA (0.6% net rate on the first $7,000 per employee after the standard state SUI credit). It also estimates state unemployment insurance using a rate you enter from your state's workforce agency. Enter gross wages for the pay period, the pay period type, year-to-date wages already paid (to track when the Social Security wage base is reached), and your SUI rate. The Social Security wage base defaults to $176,100 for 2025, the figure published by the SSA, but it is an editable field so you can update it each year. Results are estimates for planning purposes; consult IRS Publication 15 for authoritative deposit and filing rules.
Formulas
SS taxable wages = min(gross wages, SS wage base - YTD wages paid)
Social Security tax (employer) = SS taxable wages x 6.2%
Medicare tax (employer) = gross wages x 1.45%
Total FICA = SS tax + Medicare tax
FUTA taxable wages = max(0, min(gross wages, $7,000 - YTD wages))
FUTA (net) = FUTA taxable wages x 0.6%
SUI = gross wages x SUI rate %
Total employer taxes = FICA + FUTA + SUI
How to use this calculator
- Enter gross wages for the current pay period (before any deductions).
- Select the pay period frequency.
- Enter year-to-date wages already paid before this period to correctly apply the Social Security wage base cap and the FUTA $7,000 per-employee limit.
- Verify the Social Security wage base and update it if a new year's figure has been announced.
- Enter your state's SUI rate from your state workforce agency notice.
- Read employer tax totals from the output panel.
Frequently asked questions
Who pays employer FICA taxes?
The employer pays its own share of FICA taxes (Social Security and Medicare) on top of wages. This is separate from the employee's share, which is withheld from the employee's paycheck. Each party pays 6.2% for Social Security (up to the wage base) and 1.45% for Medicare. The employer's share is a payroll cost in addition to gross wages.
What is the FUTA credit and how does it work?
The gross FUTA rate is 6.0% on the first $7,000 of each employee's wages. However, employers who pay state unemployment insurance (SUI) on time receive a credit of up to 5.4%, reducing the net federal FUTA rate to 0.6%. Most employers in non-credit-reduction states pay the 0.6% net rate. IRS Form 940 is filed annually to report FUTA taxes.
How are state unemployment insurance (SUI) rates determined?
Each state sets its own SUI rate schedule based on employer experience rating: the ratio of unemployment claims from former employees to taxable wages paid. New employers typically receive an assigned rate. Rates vary widely between states (commonly 0.1% to 10%) and change annually. Check your state's workforce agency for your current rate.
Does the employer owe additional Medicare tax on high earners?
No. The 0.9% Additional Medicare Tax applies only to employees earning above $200,000 in a calendar year, and it is an employee-only tax. The employer withholds it from the employee's wages once the $200,000 threshold is crossed in that calendar year but does not pay an employer match on the additional 0.9%. The employer's Medicare rate remains 1.45% regardless of employee earnings.
When must payroll deposits be made?
The IRS requires either monthly or semi-weekly deposits depending on your lookback period tax liability. New employers generally deposit monthly. If your total taxes reported in the lookback period exceeded $50,000, you deposit semi-weekly. Deposits must be made via the Electronic Federal Tax Payment System (EFTPS). See IRS Publication 15 for the full deposit schedule rules.
Official sources
- IRS Publication 15 (Circular E), Employer's Tax Guide: www.irs.gov/publications/p15.
- IRS Topic No. 751, Social Security and Medicare Withholding Rates: www.irs.gov/taxtopics/tc751.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.