Payroll tax calculator — enter your team size and average wages to estimate your employer payroll tax obligations for 2026, including FICA match, FUTA and an estimated SUTA range. Although this is not the tax withheld from your employees' paychecks, it is the additional cost you as the employer must budget for on top of gross wages. Therefore, understanding your true payroll tax burden is essential for accurate budgeting — many first-time employers underestimate this cost significantly. Furthermore, this calculator uses verified 2026 federal rates directly from IRS and Department of Labor guidance.
📋 Employer Payroll Tax Calculator 2026
Estimate your FICA, FUTA and SUTA obligations as an employer
* This is an estimate for informational purposes only, not tax advice. FICA (6.2% Social Security up to $184,500 wage base + 1.45% Medicare uncapped) and FUTA (6.0% on first $7,000/employee, 0.6% effective with full state credit) use verified 2026 federal rates. SUTA is a simplified estimate — actual state unemployment tax rates vary significantly by state, industry and your specific experience rating. Consult your state's labor department or a payroll professional for exact SUTA rates.
What Payroll Taxes Do Employers Actually Pay?
As an employer, you owe payroll taxes on top of the wages you pay your employees — this is separate from the taxes withheld from their paychecks. Although employees see federal income tax, Social Security and Medicare deducted from their pay, employers additionally owe a matching FICA contribution plus unemployment taxes that employees never see. Consequently, the true cost of an employee is higher than their gross salary alone.
FICA — Employer Match
Employers match every dollar of Social Security and Medicare tax withheld from employee paychecks. This means for every employee, you pay an additional 6.2% for Social Security — up to the $184,500 wage base — plus 1.45% for Medicare with no cap. Furthermore, unlike the employee-side additional 0.9% Medicare surtax on high earners, employers do not pay a matching portion of that specific surtax.
FUTA — Federal Unemployment Tax
FUTA is a federal tax employers pay to fund unemployment benefits — employees never pay this tax. The standard rate is 6.0% on the first $7,000 of each employee's annual wages. However, employers who pay their state unemployment taxes on time typically receive a 5.4% credit, reducing the effective FUTA rate to just 0.6% — a maximum of $42 per employee per year at the reduced rate.
SUTA — State Unemployment Tax
SUTA (also called SUI) is a state-level unemployment tax that varies significantly by state, your industry classification and your specific "experience rating" — essentially your history of unemployment claims. In contrast to FICA and FUTA which have fixed federal rates, SUTA rates and wage bases differ substantially from state to state. Consequently, this calculator provides only a rough estimate — you should verify your exact SUTA rate with your state's labor department or your payroll provider.
| Tax | Who Pays | 2026 Rate | Wage Base |
|---|---|---|---|
| Social Security (employer) | Employer | 6.2% | $184,500 |
| Medicare (employer) | Employer | 1.45% | No cap |
| FUTA (full rate) | Employer only | 6.0% | $7,000/employee |
| FUTA (with state credit) | Employer only | 0.6% (typical) | $7,000/employee |
| SUTA | Employer (most states) | Varies by state | Varies by state |
Frequently Asked Questions
How much does an employer pay in payroll taxes per employee?
For a typical employee earning $50,000 with the standard FUTA credit, employer payroll taxes total approximately $4,242 per year — roughly 8.5% on top of the gross salary. This includes 6.2% Social Security ($3,100), 1.45% Medicare ($725), 0.6% effective FUTA ($42, capped at first $7,000) and an estimated SUTA amount that varies by state.
What is the difference between FUTA and SUTA?
FUTA is a federal unemployment tax paid only by employers at a standard rate of 6.0% on the first $7,000 of each employee's wages, typically reduced to 0.6% through a state tax credit. SUTA is a state-level unemployment tax with rates and wage bases that vary significantly by state, industry and the employer's specific claims history — there is no single national SUTA rate.
Do employers pay FICA on top of what employees pay?
Yes — FICA is split evenly between employer and employee. Employees have 6.2% Social Security and 1.45% Medicare withheld from their paychecks, and employers must match those exact amounts from their own funds. This means the total FICA contribution for each employee is actually 15.3% of wages (up to the Social Security wage base) — 7.65% from the employee and 7.65% from the employer.
What is the FUTA wage base for 2026?
The FUTA wage base for 2026 remains $7,000 per employee — this figure has not changed since 1983. FUTA tax only applies to the first $7,000 of each employee's annual wages, regardless of how much they actually earn. Wages above $7,000 per employee are never subject to FUTA.
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See Our Top Pick: OnPay → Compare Software Costs →Sources: IRS · Social Security Administration · U.S. Department of Labor · Updated August 2026. This tool provides estimates only and is not tax advice.
