Payroll Tax Calculator — Employer Costs 2026 (FICA, FUTA, SUTA)

Payroll Tax Calculator 2026 Rates

See true employer payroll tax cost — FICA, FUTA, SUTA, and total per-employee cost

What is this? When you pay an employee $80,000, it's not your only cost. As an employer you also pay: Social Security (6.2% up to the wage base), Medicare (1.45% on all earnings), federal unemployment (FUTA: 0.6% on first $7K), and state unemployment (SUTA: varies 0-6.4%). This calculator reveals the true total cost of each employee.

Who it's for: Small business owners, HR departments, and freelancers hiring their first employee. Knowing the true cost helps you price services correctly and budget accurately.

Employee Details

Gross Annual Salary ($)

Number of Employees

State (for SUTA rate)

State SUTA Rate (%) found on employer account

2026 FICA rates: Social Security employer = 6.2% (wage base $176,100). Medicare = 1.45% (no limit). Additional Medicare = 0.9% on earnings over $200K (employer doesn't match).

Benefits & Additional Compensation

401(k) Match /year ($)

Health Insurance /month ($)

Tax Breakdown — Per Employee

Tax	Rate	Annual Cost

Cost Summary

Base Salary

—

Total Employer Taxes

—

FICA + FUTA + SUTA

Benefits Cost

—

401k + health

True Annual Cost

—

salary + taxes + benefits

True Monthly Cost

—

Tax as % of Salary

—

total employer taxes

💡 Pricing tip: If an employee's salary is $80K and employer taxes add ~$6K (7.5%), your true labor cost is $86K+. Factor this into hourly rates and project pricing — many freelancers underprice because they forget the "hidden" 7-10% employer tax burden.

Estimates only. Actual rates vary by state, industry, and experience rating. FUTA credit reduction state programs vary. Does not include workers' compensation, state disability insurance, or other state-specific payroll taxes.

Payroll Tax & HR Tools

Tools that pair well with this calculator — selected by our team.

Gusto →

$300/ref through PartnerStack — payroll, taxes, W-2s

FreshBooks →

$55/sale — payroll tracking, tax forms

Tool	Best For	Network
Gusto	$300/ref through PartnerStack	PartnerStack
FreshBooks	$55/sale	Awin

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

What is the employer payroll tax rate?

Employers pay 7.65% on each employee's wages (6.2% Social Security + 1.45% Medicare). There is no cap on Medicare tax. Social Security tax caps at $168,600 in 2024 — wages above that are exempt.

When are payroll tax deposits due?

Monthly deposits are due by the 15th of the following month if your payroll tax liability is under $50K/quarter. If over $50K, you must deposit semi-weekly. Use EFTPS (IRS electronic system) to make deposits.

What forms do I need for new hires?

Form I-9 (employment eligibility), W-4 (withholding), and state new hire reporting within 20 days. Keep I-9 on file for 3 years after hire. W-4 determines federal withholding amounts.

Can I classify a worker as an independent contractor?

Only if they meet the IRS 3-factor test: behavioral control, financial control, and relationship type. Misclassification penalties are severe — 100% of taxes owed plus interest and potential criminal penalties.