Payroll Tax Calculator
Determine the total payroll tax cost for an employee. See both the amount withheld from the paycheck and the amount paid by the employer.
Employee Details
Understanding Payroll Taxes
Payroll taxes are taxes imposed on both employers and employees, calculated as a percentage of wages paid. These taxes fund critical federal programs including Social Security, Medicare, and unemployment insurance. Unlike income tax, payroll taxes are split between the employer and employee — and employers have additional obligations on top of matching employee contributions.
2025 Payroll Tax Rates — Complete Breakdown
| Tax | Employee | Employer | Wage Limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $176,100 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% | — | Above $200K |
| FUTA | — | 0.6% | $7,000 |
| Total FICA | 7.65% | 7.65%+ | — |
Employee Withholdings
Employees have the following taxes withheld from each paycheck:
- Social Security: 6.2% of wages up to the $176,100 wage base limit.
- Medicare: 1.45% of all wages, plus an additional 0.9% on earnings above $200,000.
- Federal Income Tax: Withheld based on your W-4 form elections (not a fixed percentage).
Employer Costs
Employers pay matching taxes plus additional obligations:
- Social Security: Matches the employee's 6.2% (up to the wage base).
- Medicare: Matches the employee's 1.45% (employers do not pay the additional 0.9%).
- FUTA: Federal Unemployment Tax of 0.6% on the first $7,000 per employee per year (after SUTA credit).
- SUTA: State unemployment taxes vary by state and employer experience rating.
Frequently Asked Questions
What are payroll taxes?
Payroll taxes are taxes deducted from employee wages and matched by employers to fund Social Security, Medicare, and unemployment insurance programs. The combined FICA rate is 15.3% (7.65% each for employee and employer).
Who pays for Social Security and Medicare taxes?
Both employees and employers share the cost equally. Each pays 6.2% for Social Security and 1.45% for Medicare. The additional 0.9% Medicare surtax for high earners is paid only by the employee.
What is FUTA tax?
FUTA (Federal Unemployment Tax Act) is a tax paid only by employers at a rate of 6.0% on the first $7,000 of each employee's wages. After the standard credit for paying state unemployment taxes, the effective rate is typically 0.6%.