Payroll Tax Calculator (Employer)
Calculate employer payroll tax costs including FICA (6.2% SS + 1.45% Medicare), FUTA, and state unemployment tax. See total employee cost.
$
Quick:
$70,979
Total Employer Cost
$5,979
Total Payroll Taxes
$4,973
Employer FICA
109.2%
Loaded Cost Ratio
Employer Tax Breakdown
| Tax | Rate | Taxable Wages | Annual Cost |
|---|---|---|---|
| Social Security (employer) | 6.20% | $65,000 | $4,030 |
| Medicare (employer) | 1.45% | $65,000 | $943 |
| FUTA (net effective) | 0.60% | First $7,000 | $42 |
| SUTA (state) | 2.70% | $9,000 | $243 |
| Total Payroll Taxes | $5,258 | ||
Employer Payroll Tax Overview
For each employee, employers must pay their share of FICA taxes (Social Security and Medicare), plus federal and state unemployment taxes. These are in addition to the employee's gross salary.
Employer Tax Rates (2024)
Social Security: 6.2% on wages up to $168,600
Medicare: 1.45% on all wages (no cap)
FUTA: 6.0% on first $7,000 gross wages
less 5.4% credit = 0.6% effective ($42 max/employee)
SUTA: varies by state and employer experience
Medicare: 1.45% on all wages (no cap)
FUTA: 6.0% on first $7,000 gross wages
less 5.4% credit = 0.6% effective ($42 max/employee)
SUTA: varies by state and employer experience
Example
$65,000 salary in Ohio (2.70% SUTA, $9,000 wage base):
SS = $65,000 Γ 6.2% = $4,030
Medicare = $65,000 Γ 1.45% = $943
FUTA = $7,000 Γ 0.6% = $42
SUTA = $9,000 Γ 2.70% = $243
Total Payroll Tax = $5,258
SS = $65,000 Γ 6.2% = $4,030
Medicare = $65,000 Γ 1.45% = $943
FUTA = $7,000 Γ 0.6% = $42
SUTA = $9,000 Γ 2.70% = $243
Total Payroll Tax = $5,258
Extended
Total Cost of Employee
Complete breakdown of employer costs including benefits and overhead
Total Cost of Employee
Add benefits, overhead, and other costs to see your full employee investment.
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PTO accrual, dental, vision, life, etc.
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Office space, equipment, software, etc.
| Cost Component | Annual Amount |
|---|---|
| Base Salary | $65,000 |
| Employer FICA + Payroll Taxes | $5,258 |
| Health Insurance | $7,200 |
| Retirement Match | $1,950 |
| Other Benefits | $1,000 |
| Overhead Allocation | $6,500 |
| Total Annual Employee Cost | $86,908 |
Loaded cost = 133.7% of base salary
Frequently Asked Questions
What payroll taxes does an employer pay?
Employers pay: Social Security (6.2% up to $168,600 wage base), Medicare (1.45% with no cap), FUTA federal unemployment (0.6% effective on first $7,000), and state unemployment tax (SUTA rates vary 1β10%).
What is the FUTA tax rate?
The FUTA (Federal Unemployment Tax Act) rate is 6% on the first $7,000 of each employee's wages. However, employers receive a 5.4% credit for paying state unemployment taxes on time, making the effective rate 0.6% ($42 max per employee).
What is SUTA?
State Unemployment Tax Act (SUTA) rates vary by state and employer experience rating. New employer rates typically range from 1.0% to 3.4%. Taxable wage bases also vary, from $7,000 (FL) to over $50,000 (some states).
Is there an additional Medicare tax?
Employers must also withhold (but do not match) an additional 0.9% Medicare tax on employee wages exceeding $200,000 in a calendar year. The employer does not pay this additional amount.
What is the total cost of an employee?
Total employee cost = Gross Salary + Employer FICA (7.65%) + FUTA (0.6% on first $7K) + SUTA + Benefits (health insurance, retirement match, etc.). The "loaded" cost is typically 1.25β1.4Γ the base salary.