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🏢 Employer Tax Calculator 2026

Calculate IRS payroll taxes — FICA, FUTA & total employer tax liability

💼 Employee Wages

📍 State Settings

⚠️ Disclaimer: This calculator provides estimates for 2026 IRS payroll taxes. Rates may change. State rates vary by experience rating. Consult a tax professional for accurate calculations.
Total Employer Tax Liability
$0.00
Per pay period

🏛️ Federal Taxes (FICA)

Social Security (6.2%)$0.00
Medicare (1.45%)$0.00
Total FICA$0.00

📋 Unemployment Taxes

FUTA (0.6%)$0.00
SUTA (2.7%)$0.00
Total Unemployment$0.00

📊 Annual Projections

Pay Periods/Year26
Annual Gross Payroll$0
Est. Annual Employer Tax$0
Employer Tax as % of Payroll0%
Avg Tax Per Employee/Period$0

💰 Total Cost Per Employee

Avg Wages (this period)$0
+ Employer Taxes$0
Total Cost Per Employee$0

2026 IRS Payroll Tax Rates

Tax Type Employer Rate Employee Rate Wage Base Notes
Social Security 6.2% 6.2% $168,600 Combined 12.4%
Medicare 1.45% 1.45% No limit +0.9% employee over $200k
FUTA (Federal Unemployment) 6.0% (0.6% after credit) None $7,000 5.4% credit for SUTA
SUTA (State Unemployment) 0.5% - 5.4%+ (varies) Varies by state $7,000 - $56,500 Experience rated

Understanding Employer Payroll Taxes

🏛️ FICA (Federal)

FICA = Social Security + Medicare. Employers pay 6.2% SS (up to $168,600) + 1.45% Medicare = 7.65% of wages. This matches employee contribution, totaling 15.3%.

📋 FUTA

Federal Unemployment Tax is 6.0% on first $7,000/employee. With SUTA credit (5.4%), effective rate is 0.6%. Maximum $42/employee/year.

🏠 SUTA

State Unemployment Tax varies by state and experience rating (new employers ~2.7%). Wage bases range from $7,000 (most states) to $56,500 (WA).

💵 Total Employer Cost

Expect 7.65% - 10%+ above wages for employer taxes. Plus benefits, workers' comp, etc. Total employer cost is typically 1.25-1.4x salary.

Frequently Asked Questions

What payroll taxes do employers pay?
Employers pay: Social Security (6.2%), Medicare (1.45%), FUTA (0.6%), and SUTA (varies by state). Total is typically 7.65-10% above gross wages.
What is FICA and how much do employers pay?
FICA = Federal Insurance Contributions Act covering Social Security and Medicare. Employers pay 7.65% (6.2% SS + 1.45% Medicare). This matches the employee portion for a total of 15.3%.
What is the Social Security wage base for 2026?
The 2026 Social Security wage base is $168,600. The 6.2% tax only applies to wages up to this amount per employee. Wages above this aren't subject to SS tax.
What is FUTA tax?
FUTA (Federal Unemployment Tax Act) funds unemployment benefits. Rate is 6.0% on first $7,000/employee, but 5.4% credit for SUTA gives effective rate of 0.6%. Max $42/employee/year.
What is SUTA tax?
SUTA (State Unemployment Tax Act) is state-level unemployment tax. Rates vary by state (0.5%-5.4%+) and employer's experience rating. New employers often pay ~2.7%. Wage bases vary widely.
How do I calculate employer payroll taxes?
Employer taxes = (Gross Wages × 7.65%) + FUTA + SUTA. SS applies up to wage base. FUTA/SUTA apply to first $7,000 (varies). Use our free employee payroll calculator above.
Do employers pay income tax for employees?
No. Employers withhold federal/state income tax from employee paychecks but don't pay it themselves. They only match FICA and pay unemployment taxes from their own funds.
What is the employer portion of payroll taxes?
Employers pay: 6.2% Social Security (matching), 1.45% Medicare (matching), 0.6% FUTA, and SUTA (varies). Total employer-only taxes are approximately 7.65-10%.
When are payroll taxes due to the IRS?
Deposit schedules: Semi-weekly (Wed/Fri paydays) or monthly (15th of next month) based on tax liability. Form 941 filed quarterly. Annual FUTA (Form 940) due Jan 31.
What is an experience rating for SUTA?
Experience rating adjusts SUTA rate based on claims history. Fewer layoffs = lower rate (0.5% or less). More layoffs = higher rate (up to 5.4%+). New employers get standard rate.
Is there a limit on Medicare tax?
No wage limit for Medicare. The 1.45% employer portion applies to all wages. Employees pay additional 0.9% on wages over $200k (employer doesn't match this).
How much does an employee really cost?
Total cost = Salary × 1.25-1.4 typically. This includes employer taxes (~7.65%), benefits (health, 401k match), workers' comp, and other costs. A $50k salary costs ~$60-70k total.
What payroll taxes are deductible for employers?
All employer payroll taxes are business expenses and tax deductible: FICA employer portion, FUTA, SUTA. This reduces taxable business income.
Do small businesses pay payroll taxes?
Yes. All employers with employees must pay payroll taxes regardless of size. Even one employee triggers FICA, FUTA, SUTA obligations. Independent contractors are different (no payroll taxes).
What is Form 941?
Form 941 is the quarterly federal tax return reporting employee wages, tips, income tax withheld, and employer/employee FICA. Due April 30, July 31, Oct 31, Jan 31.
What is the penalty for late payroll taxes?
IRS penalties range from 2% (1-5 days late) to 15% (10+ days after notice). Plus interest. Willful failure can result in 100% Trust Fund Recovery Penalty on responsible persons.
Can I use a free payroll calculator?
Yes! Our free employee payroll calculator above estimates employer taxes accurately. For official filings, use IRS Publication 15 or payroll software. Always verify with a tax professional.