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
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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
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
All Employees Total
Total Salaries
—
Total Employer Taxes
—
Total Annual Cost
—
💡 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.
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FTC Disclosure: This link is an affiliate link. We may earn a commission at no extra cost to you if you sign up through this link. This compensation helps support this free calculator.
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.
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