Calculate Payroll Taxes
Enter gross pay and pay frequency to calculate Social Security, Medicare, Additional Medicare, and FUTA taxes for both employer and employee portions.
2024 Payroll Tax Rates
Current federal payroll tax rates and wage base limits:
| Tax Type | Employee Rate | Employer Rate | Wage Base Limit |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | $168,600 (2024) |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare Tax | 0.9% | 0% | $200,000 (Single) $250,000 (Married Joint) $125,000 (Married Separate) |
| FUTA (Federal Unemployment) | 0% | 0.6% (effective) | First $7,000 per employee |
Note: FUTA statutory rate is 6.0%, but employers typically receive a 5.4% credit for state unemployment taxes, resulting in an effective rate of 0.6%. State unemployment taxes (SUTA) vary by state and are not included in this calculator.
How Payroll Taxes Work
Payroll taxes are employment taxes that both employers and employees pay on wages and salaries. These taxes fund Social Security, Medicare, and unemployment insurance programs.
Social Security Tax (OASDI)
The Social Security tax, officially called Old-Age, Survivors, and Disability Insurance (OASDI), is 6.2% for employees and 6.2% for employers, totaling 12.4%. This tax applies only to wages up to the Social Security wage base ($168,600 for 2024). Wages above this amount are not subject to Social Security tax.
Medicare Tax
The Medicare tax is 1.45% for employees and 1.45% for employers, totaling 2.9%. Unlike Social Security, there is no wage cap — all earnings are subject to Medicare tax regardless of income level.
Additional Medicare Tax
High earners pay an Additional Medicare Tax of 0.9% on wages exceeding the threshold:
- $200,000 for single filers
- $250,000 for married filing jointly
- $125,000 for married filing separately
This tax applies only to the employee (not the employer) and only on the amount above the threshold. For example, a single filer earning $220,000 would pay 0.9% on $20,000 ($220,000 - $200,000) = $180 in Additional Medicare Tax.
FUTA (Federal Unemployment Tax)
FUTA is a federal employer-only tax that funds unemployment compensation programs. The statutory FUTA rate is 6.0% on the first $7,000 of each employee's annual wages. However, employers who pay state unemployment taxes on time typically receive a credit of up to 5.4%, reducing the effective FUTA rate to 0.6% (or $42 per employee per year maximum).
Examples
Example 1: Bi-weekly Payroll at $5,000
Input: $5,000 gross pay, bi-weekly frequency
Annual salary equivalent: $130,000
- Employee Social Security: $5,000 × 6.2% = $310.00
- Employee Medicare: $5,000 × 1.45% = $72.50
- Additional Medicare: $0 (annual income under $200,000 threshold)
- Total employee taxes per paycheck: $382.50
- Employer Social Security: $310.00
- Employer Medicare: $72.50
- Employer FUTA: $42 annually ($0 per paycheck after first ~$269 paid)
- Total employer taxes per paycheck: $382.50 (plus FUTA annually)
- Employee net pay: $4,617.50
Example 2: Monthly Payroll at $20,000 (High Earner)
Input: $20,000 gross pay, monthly frequency
Annual salary equivalent: $240,000
- Employee Social Security: Capped at $168,600 annual wage base
- For months 1-8: $20,000 × 6.2% = $1,240
- For months 9+: Only taxed up to reaching $168,600
- Employee Medicare: $20,000 × 1.45% = $290.00
- Additional Medicare: On $240,000 annual, $40,000 is over $200,000 threshold
- Additional Medicare: $40,000 ÷ 12 months = $3,333.33 × 0.9% = $30.00 per month
- Total employee taxes (typical month): $1,560.00
- Employee net pay: $18,440.00
Example 3: Weekly Payroll at $1,000
Input: $1,000 gross pay, weekly frequency
Annual salary equivalent: $52,000
- Employee Social Security: $1,000 × 6.2% = $62.00
- Employee Medicare: $1,000 × 1.45% = $14.50
- Additional Medicare: $0 (under threshold)
- Total employee taxes: $76.50
- Employer Social Security: $62.00
- Employer Medicare: $14.50
- Employer FUTA: $42 annually (reached after 7 weeks)
- Total employer taxes: $76.50 per week
- Employee net pay: $923.50
Understanding Your Total Tax Burden
When calculating the true cost of employment, employers must consider both the employee's gross wage and the employer's payroll tax obligations. The employer portion (Social Security, Medicare, and FUTA) represents additional costs beyond the stated salary.
Total Employment Cost for Employers
For most employees, the employer's total cost is approximately 7.65% above gross wages:
- 6.2% Social Security (up to wage base)
- 1.45% Medicare
- 0.6% FUTA (effective, capped at first $7,000)
For example, an employee earning $60,000 annually costs the employer approximately $64,590 ($60,000 + $4,590 in payroll taxes).
Employee Take-Home Impact
Employees see their gross pay reduced by at least 7.65% for payroll taxes (before income tax withholding):
- 6.2% Social Security
- 1.45% Medicare
- Plus 0.9% Additional Medicare if over threshold
A $60,000 salary results in $4,590 withheld for payroll taxes, plus federal and state income tax withholding.
Frequently Asked Questions
What are payroll taxes?
Payroll taxes are employment taxes on wages and salaries that fund Social Security, Medicare, and unemployment insurance. Both employers and employees pay these taxes. The main components are Social Security (6.2% each), Medicare (1.45% each), Additional Medicare (0.9% on high earners, employee only), and FUTA (0.6% effective rate, employer only).
What is the Social Security wage base limit?
For 2024, the Social Security wage base is $168,600. This means only the first $168,600 of an employee's annual wages are subject to the 6.2% Social Security tax. Wages above this amount are not taxed for Social Security purposes. The wage base is adjusted annually for inflation.
Do self-employed people pay payroll taxes?
Yes, but differently. Self-employed individuals pay self-employment tax, which is essentially both the employee and employer portions of Social Security and Medicare taxes (15.3% total: 12.4% Social Security + 2.9% Medicare). However, they can deduct half of this tax when calculating adjusted gross income.
What is the difference between FICA and payroll taxes?
FICA (Federal Insurance Contributions Act) taxes are the employee and employer portions of Social Security and Medicare taxes. Payroll taxes include FICA taxes plus employer-paid unemployment taxes (FUTA). The terms are often used interchangeably, but technically payroll taxes is the broader category.
Are payroll taxes deductible for employers?
Yes. The employer portion of payroll taxes (Social Security, Medicare, and FUTA) is a deductible business expense. Employee wages and employer payroll taxes both reduce the employer's taxable income.
What happens if an employee has multiple jobs?
Each employer withholds Social Security and Medicare taxes separately based on what they pay you. However, if your combined income from all jobs exceeds the Social Security wage base ($168,600), you will have overpaid Social Security tax. You can claim a refund for the excess when you file your tax return. The Additional Medicare Tax applies to your combined income across all jobs.
How often are payroll taxes paid?
Employers must deposit withheld payroll taxes according to an IRS schedule, typically either monthly or semi-weekly depending on the size of the tax liability. Most employers use electronic funds transfer (EFTPS) to deposit these taxes. Quarterly reporting is done via Form 941.
Does this calculator include state taxes?
No. This calculator only computes federal payroll taxes (Social Security, Medicare, Additional Medicare, and FUTA). State unemployment taxes (SUTA), state disability insurance (SDI, in some states), and other state-specific payroll taxes are not included. Check your state's labor department for state-specific rates.
Does this calculator store my data?
No. All calculations run entirely in your browser. No wage or tax data is sent to any server, and nothing is stored.
Related Tools
- Income Tax Calculator — estimate federal income tax and take-home pay
- Net Salary Calculator — calculate net pay from gross salary
- Gross Salary Calculator — reverse calculate gross from net salary
- Overtime Calculator — calculate overtime pay at 1.5x or 2x rates
- Raise Calculator — calculate new salary after a percentage raise
- Hourly to Salary Calculator — convert hourly wage to annual salary
Limitations & Disclaimer
Educational Tool: This calculator provides estimates for federal payroll taxes only. It does not include state unemployment taxes (SUTA), state disability insurance (SDI), local taxes, or other jurisdiction-specific payroll obligations.
Accuracy: Tax rates and wage base limits are based on 2024 federal guidelines and are subject to change. Always verify current rates with the IRS or a qualified tax professional.
Not Tax Advice: This tool is for estimation purposes only and does not constitute legal, tax, or financial advice. Consult a certified public accountant, tax advisor, or payroll specialist for guidance specific to your situation.
Privacy: All calculations occur entirely in your browser. No personal or financial data is transmitted or stored.
Related Tools
View all toolsSimple Interest Calculator
Calculate simple interest and total amount
Loan Calculator
Calculate monthly payments and total interest
Loan Amortization Schedule
Generate a full payment-by-payment breakdown with principal, interest, and balance
Mortgage Calculator
Estimate mortgage payments and totals
Refinance Calculator
Calculate break-even point on mortgage refinancing and compare monthly savings
Compound Interest Calculator
Calculate compound growth over time
Payroll Tax Calculator FAQ
What are payroll taxes?
Payroll taxes are taxes on wages and salaries that fund Social Security, Medicare, and unemployment insurance programs. Both employers and employees pay portions of these taxes. The main payroll taxes are Social Security (6.2% each for employer and employee), Medicare (1.45% each), Additional Medicare (0.9% on high earners, employee only), and FUTA (Federal Unemployment Tax, employer only).
What is the Social Security tax rate?
The Social Security tax rate is 6.2% for employees and 6.2% for employers, totaling 12.4%. This applies to wages up to the annual wage base limit ($168,600 for 2024). Wages above this limit are not subject to Social Security tax.
What is the Medicare tax rate?
The Medicare tax rate is 1.45% for employees and 1.45% for employers, totaling 2.9%. Unlike Social Security, there is no wage cap for Medicare tax. Additionally, employees earning over $200,000 ($250,000 for married filing jointly) pay an Additional Medicare Tax of 0.9% on earnings above the threshold.
What is FUTA tax?
FUTA (Federal Unemployment Tax Act) is a federal employer-only tax that funds unemployment compensation. The FUTA tax rate is 6.0% on the first $7,000 of each employee's wages. However, employers typically receive a 5.4% credit for state unemployment taxes, resulting in an effective FUTA rate of 0.6%.
Who pays payroll taxes?
Both employers and employees pay payroll taxes. Employees pay 6.2% Social Security, 1.45% Medicare, and potentially 0.9% Additional Medicare (on income over $200,000). Employers pay matching 6.2% Social Security, 1.45% Medicare, plus 0.6% FUTA (effectively). The employer's portion is a business expense, while the employee's portion is withheld from wages.
What is the Additional Medicare Tax?
The Additional Medicare Tax is a 0.9% tax on wages exceeding $200,000 for single filers ($250,000 for married filing jointly). This tax applies only to employees, not employers. It was introduced in 2013 as part of the Affordable Care Act.
Are payroll taxes different from income tax?
Yes. Payroll taxes (FICA taxes) fund specific programs like Social Security and Medicare and are calculated as flat percentages of wages. Income tax is progressive, based on tax brackets, and funds general government operations. Both are typically withheld from paychecks but serve different purposes.
Does this calculator store my data?
No. All calculations run entirely in your browser. No wage or tax data is sent to any server, and nothing is stored.