What payroll taxes do employers pay?

Employers pay six categories of payroll tax: Social Security (6.2% up to the wage base of $184,500), Medicare (1.45% of all wages), Federal Unemployment Tax or FUTA (0.6% on the first $7,000), State Unemployment Tax or SUTA (varies by state), Workers' Compensation insurance, and state-specific programs like disability insurance or paid family leave.

How do I calculate payroll taxes for multiple employees?

Calculate the annual payroll tax for one employee based on their salary and state, then multiply by the number of employees. Each employee is subject to their own wage caps (e.g., Social Security tax stops at $184,500 per employee, not across all employees combined).

What is Form 941 and when is it due?

Form 941 is the Employer's Quarterly Federal Tax Return. It reports income taxes, Social Security tax, and Medicare tax withheld from employee paychecks, plus the employer's share of Social Security and Medicare taxes. It's due by the last day of the month following each quarter: April 30, July 31, October 31, and January 31.

What is the difference between FUTA and SUTA?

FUTA (Federal Unemployment Tax Act) is a federal tax of 0.6% on the first $7,000 of each employee's wages. SUTA (State Unemployment Tax Act) is a state-level unemployment tax with rates and wage bases that vary significantly by state. Both fund unemployment insurance, but SUTA rates depend on your state and claims history.

Payroll Tax Calculator

Calculate employer payroll tax obligations by state. See per-period breakdowns, quarterly filing estimates, and annual totals.

Payroll Details

Annual Salary per Employee

State

Number of Employees

Pay Frequency

Tax	Annual (per employee)
Social Security 6.2%	-
Medicare 1.45%, no cap	-
FUTA 0.6% on first $7,000	-
SUTA -	-
Workers' Comp -	-
State Programs -	-

Quarter	Period	Due Date	Estimated Tax
Q1	Jan – Mar	April 30	-
Q2	Apr – Jun	July 31	-
Q3	Jul – Sep	October 31	-
Q4	Oct – Dec	January 31	-
Annual Total	-

What Are Payroll Taxes?

Payroll taxes are mandatory contributions employers must pay on top of employee wages. Unlike income tax (which employees pay), payroll taxes are an additional employer expense that directly increases your cost of doing business.

FICA: Social Security & Medicare

FICA taxes are the largest payroll tax for most employers. You pay 6.2% for Social Security on each employee's wages up to $184,500 (2026 cap), and 1.45% for Medicare on all wages with no cap. Combined, that's 7.65% of wages — for a $60,000 employee, that's $4,590 per year in FICA alone.

Federal & State Unemployment (FUTA/SUTA)

FUTA is a flat 0.6% on the first $7,000 of each employee's wages ($42 per employee). SUTA varies dramatically: rates range from under 1% to over 8%, and wage bases range from $7,000 to over $50,000 depending on your state and claims history.

State-Specific Programs

Some states require additional employer contributions for disability insurance (DI) and paid family leave (PFL). California, New York, New Jersey, and a few others have mandatory programs. These are typically a small percentage of wages but add up across employees.

Looking for Total Employee Cost?

Our Employee Cost Calculator includes payroll taxes plus benefits, overhead, and workspace costs to show you the full cost of hiring.

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