# Payroll Tax Calculator

Calculate the true cost of hiring an employee. See employer taxes including FICA, FUTA, and SUTA—know exactly what you'll pay beyond salary.

## Employee Information

- Annual Salary: $75,000
- Pay Frequency: Weekly, Bi-weekly, Monthly, Annual
- State: California, New York, Texas, Florida, Washington, Pennsylvania, Illinois, Massachusetts

### Employer Tax Breakdown

- **Employer Taxes**: $6,018 per year
- **True Cost**: $81,018 (salary + taxes)

### Employer Taxes

| Tax | Amount |
| --- | --- |
| **Social Security (6.2%)** | $4,650 |
| **Medicare (1.45%)** | $1,088 |
| **FUTA (0.6%)** | $42 |
| **SUTA (3.4%)** | $238 |

- **Total Employer Taxes**: $6,018

#### Per-Period Costs

- **Employer Taxes**: $231
- **True Cost per Period**: $3,116

### Additional Costs

This calculator shows payroll taxes only. Additional employer costs may include: health insurance ($7K-15K/year), 401(k) match, workers' comp, and other benefits.

## What This Calculator Includes

#### FICA Taxes

- Social Security + Medicare

#### FUTA Tax

- Federal unemployment

#### SUTA Tax

- State unemployment

#### True Cost

- Total employer expense

## Why Use This Calculator?

#### Budget Accurately

Know the true cost of hiring before making offers or budgeting for new positions.

#### Plan Cash Flow

Understand payroll tax obligations to avoid cash flow surprises.

#### Stay Compliant

Calculate taxes correctly using current IRS and state tax rates.

## Employer FICA Match: Social Security and Medicare Tax Obligations

Under the **Federal Insurance Contributions Act (FICA)**, employers must match their employees' Social Security and Medicare taxes dollar-for-dollar. For the **2026 tax year**, the combined FICA rate is **15.3%** (7.65% employee + 7.65% employer):

| Tax | Employee Rate | Employer Rate | Wage Base |
| --- | --- | --- | --- |
| **Social Security** | 6.2% | 6.2% | $184,500 |
| **Medicare** | 1.45% | 1.45% | No limit |
| **Additional Medicare** | 0.9% | 0% (employee only) | Over $200,000 single |

The Social Security wage base of **$184,500** means both the employer and employee stop paying the 6.2% once the employee's cumulative wages reach that threshold. For an employee earning exactly $184,500, the employer pays **$11,439** in Social Security tax plus **$2,675** in Medicare tax = **$14,114** in FICA. The **Additional Medicare Tax** of 0.9% is paid only by the employee on wages exceeding $200,000 (single) or $250,000 (MFJ) -- the employer does not match this portion.

## FUTA and SUTA: Federal and State Unemployment Taxes

Employers pay **federal unemployment tax (FUTA)** at a gross rate of **6.0%** on the first **$7,000** of each employee's wages under **IRC Section 3301**. However, employers in states with compliant unemployment programs receive a **5.4% credit**, reducing the effective FUTA rate to just **0.6%**. Maximum FUTA per employee: **$42/year**.

**State Unemployment Tax Act (SUTA)** rates vary dramatically by state and employer experience:

| State | New Employer Rate | Taxable Wage Base | Rate Range |
| --- | --- | --- | --- |
| **California** | 3.4% | $7,000 | 1.5% - 6.2% |
| **New York** | 4.1% | $12,500 | 2.1% - 9.9% |
| **Texas** | 2.7% | $9,000 | 0.31% - 6.31% |
| **Florida** | 2.7% | $7,000 | 0.1% - 5.4% |
| **Washington** | varies | $67,600 | 0.27% - 6.02% |

Experience-rated employers see lower SUTA rates as they maintain a stable workforce. **New employers** typically pay a state-assigned default rate for the first 2-3 years. Washington state has the highest taxable wage base at **$67,600**, meaning SUTA can exceed $4,000 per employee there.

## Form 941 Quarterly Filing and W-2 / W-3 Requirements

Employers must file **Form 941 (Employer's Quarterly Federal Tax Return)** every quarter to report wages, tips, federal income tax withheld, and FICA taxes. The deadlines are **April 30** (Q1), **July 31** (Q2), **October 31** (Q3), and **January 31** (Q4) of the following year.

Key annual filing requirements include:

- **Form W-2**: Issued to each employee by **January 31** showing wages, federal/state tax withheld, Social Security and Medicare wages and taxes, and retirement plan contributions.
- **Form W-3**: Transmittal form filed with the SSA summarizing all W-2s. Due **January 31** along with copies of all W-2 forms.
- **Form 940**: Annual FUTA tax return, due **January 31**. If all FUTA deposits were made on time, the deadline extends to **February 10**.

Payroll tax deposits follow **either** a monthly or semi-weekly schedule based on your **lookback period** liability. Employers with $50,000 or less in payroll taxes during the lookback period deposit **monthly** (by the 15th of the following month). Those above $50,000 deposit **semi-weekly**. Penalties for late deposits range from **2% to 15%** of the unpaid amount depending on how late the deposit is.

## Automate Payroll Tax Calculations

Jupid AI Accountant automatically calculates, tracks, and files all your payroll taxes—FICA, FUTA, SUTA, and withholdings—ensuring compliance without the hassle.