Helpful Toolbox

Employer Payroll Tax Calculator

Enter a salary and see every employer-side payroll tax — Social Security, Medicare, FUTA and your state SUTA rate — plus the total burden and the true cost of the hire. All rates and wage bases are editable, and everything runs privately in your browser.

📖 How it works & FAQ

What a salary really costs your business

The number on the offer letter is never the number that leaves your bank account. On top of gross wages, U.S. employers pay their own share of payroll taxes: Social Security at 6.2% (up to an annual wage base of about $168,600), Medicare at 1.45% with no cap, federal unemployment (FUTA) at an effective 0.6% on the first $7,000 of wages, and state unemployment (SUTA) at a rate your state assigns you — often somewhere between 0.5% and 6%, applied to a state-specific wage base. This calculator adds each piece up so you can see the total employer burden, the effective tax rate on the salary, and the true annual cost of the hire before benefits, insurance or equipment.

Every rate and wage base is an editable input, so when the Social Security wage base changes or your state sends a new SUTA rate notice, just type the new numbers in. Estimates only, not professional/financial/tax/medical/legal advice; rates & fees vary by year, state and employer history.

How to use it

  1. Enter the employee's annual gross salary.
  2. Check the Social Security, Medicare and FUTA rates and wage bases — the current federal defaults are pre-filled.
  3. Enter your SUTA rate and wage base from your state's rate notice (new employers often start around 2.7%).
  4. Read the results instantly: each tax, the total burden, the effective percentage and the true cost of the employee.

FAQ

Does the employee also pay these taxes?
Employees pay their own matching 6.2% Social Security and 1.45% Medicare through withholding. FUTA and SUTA are employer-only in almost every state. This tool shows only the employer side.
Why is FUTA 0.6% and not 6%?
The statutory FUTA rate is 6%, but employers who pay state unemployment tax on time receive a credit of up to 5.4%, leaving the common effective rate of 0.6% on the first $7,000 per employee.
Where do I find my SUTA rate?
Your state workforce or unemployment agency mails an annual rate notice based on your industry and layoff history. New businesses get a standard new-employer rate until they build experience.
Does this include benefits or workers' comp?
No. Health insurance, retirement match, workers' compensation and local payroll taxes are extra — many businesses budget 1.25–1.4× salary for fully loaded cost.