Estimate your total payroll tax obligations for a given employee's gross wages.
Typically 7.65% (6.2% Social Security + 1.45% Medicare)
Employer's share is typically 7.65% (6.2% Social Security + 1.45% Medicare)
Federal Unemployment Tax Act. Standard rate is 6.0%, but a credit of up to 5.4% is common, resulting in a net rate of 0.6% on wages up to $7,000 per employee.
State Unemployment Tax Act. Varies significantly by state and employer experience rating. This is an example rate.
Estimated Employer Payroll Taxes
This is an estimation and does not include other potential taxes or deductions.
Understanding Employer Payroll Taxes
As an employer, you are responsible for several taxes related to your employees' compensation. These taxes fund various social insurance programs and are crucial for compliance. This calculator helps estimate your total tax burden based on an employee's gross wages.
Key Payroll Taxes for Employers:
FICA Taxes (Social Security and Medicare): Employers are required to match the FICA contributions made by their employees. This includes 6.2% for Social Security (up to an annual wage base limit) and 1.45% for Medicare (with no wage base limit). The total FICA match is 7.65%.
Federal Unemployment Tax Act (FUTA): This tax funds federal and state unemployment programs. The standard FUTA rate is 6.0%, but employers typically receive a credit of up to 5.4% if they pay state unemployment taxes on time. This results in a net FUTA rate of 0.6% on the first $7,000 of wages paid to each employee annually.
State Unemployment Tax Act (SUTA): Similar to FUTA, SUTA funds state unemployment benefits. Rates vary significantly by state and are often experience-based, meaning employers with fewer unemployment claims pay lower rates. The rate used in this calculator is an example.
How the Calculator Works:
The Employer Payroll Tax Calculator estimates the employer's portion of these taxes based on the provided gross wages and the applicable tax rates.
Calculations:
Employer FICA Match: Gross Wages * (Employer FICA Rate / 100)
FUTA Tax: This is a bit more complex due to the wage base limit.
If Gross Wages are less than or equal to the FUTA Wage Base ($7,000 in most cases), FUTA Tax = Gross Wages * (FUTA Rate / 100)
If Gross Wages exceed the FUTA Wage Base, FUTA Tax is capped at the maximum FUTA tax for the year per employee: $7,000 * (FUTA Rate / 100)
*Note: For simplicity in this calculator, we apply the FUTA rate to the entered gross wages. A more precise calculation would track wages year-to-date per employee to enforce the wage base limit.*
SUTA Tax: Similar to FUTA, SUTA also has a wage base limit.
If Gross Wages are less than or equal to the SUTA Wage Base (varies by state), SUTA Tax = Gross Wages * (SUTA Rate / 100)
If Gross Wages exceed the SUTA Wage Base, SUTA Tax is capped at the maximum SUTA tax for the year per employee: SUTA Wage Base * (SUTA Rate / 100)
*Note: This calculator applies the SUTA rate to the entered gross wages. A more precise calculation would consider the state's specific wage base and individual employee year-to-date wages.*
Total Employer Payroll Taxes: Employer FICA Match + FUTA Tax + SUTA Tax
Disclaimer:
This calculator provides an estimation for educational purposes. Actual tax liabilities may vary based on specific state laws, local taxes, employee tax statuses, updated wage base limits, and individual employer experience ratings. Consult with a qualified tax professional or refer to official IRS and state tax agency guidelines for precise figures.
function calculatePayrollTaxes() {
var grossWages = parseFloat(document.getElementById("grossWages").value);
var ficaEmployeeRate = parseFloat(document.getElementById("fIcaEmployeeRate").value);
var ficaEmployerRate = parseFloat(document.getElementById("fIcaEmployerRate").value);
var futaRate = parseFloat(document.getElementById("futaRate").value);
var sutaRate = parseFloat(document.getElementById("sutaRate").value);
var resultDiv = document.getElementById("result");
var resultValueDiv = document.getElementById("result-value");
if (isNaN(grossWages) || grossWages < 0) {
alert("Please enter a valid number for Gross Wages.");
resultDiv.style.display = 'none';
return;
}
if (isNaN(ficaEmployeeRate) || ficaEmployeeRate < 0) {
alert("Please enter a valid number for FICA Employee Rate.");
resultDiv.style.display = 'none';
return;
}
if (isNaN(ficaEmployerRate) || ficaEmployerRate < 0) {
alert("Please enter a valid number for FICA Employer Match Rate.");
resultDiv.style.display = 'none';
return;
}
if (isNaN(futaRate) || futaRate < 0) {
alert("Please enter a valid number for FUTA Rate.");
resultDiv.style.display = 'none';
return;
}
if (isNaN(sutaRate) || sutaRate < 0) {
alert("Please enter a valid number for SUTA Rate.");
resultDiv.style.display = 'none';
return;
}
// — Simplified Calculations (ignoring wage base limits for this basic example) —
// For a truly accurate calculator, wage base limits and year-to-date tracking per employee are essential.
// This example applies the rates directly to the entered gross wages for demonstration.
var employerFicaMatch = grossWages * (ficaEmployerRate / 100);
// Simplified FUTA and SUTA calculation: Applying rate to gross wages.
// In reality, these taxes are capped at specific wage bases ($7,000 for FUTA, varies for SUTA).
var futaTax = grossWages * (futaRate / 100);
var sutaTax = grossWages * (sutaRate / 100);
var totalEmployerTaxes = employerFicaMatch + futaTax + sutaTax;
resultValueDiv.innerHTML = "$" + totalEmployerTaxes.toFixed(2);
resultDiv.style.display = 'block';
}