Estimate employee take-home pay and total employer liabilities.
Monthly
Semi-Monthly
Bi-Weekly
Weekly
Employee Gross Pay:
Employee FICA (7.65%):
Federal & State Withholding:
Employee Net Take-Home:
Employer FICA (7.65%):
Est. FUTA/SUTA (Employer):
Total Cost to Employer:
How the Gusto Payroll Calculation Works
Calculating payroll involves more than just writing a check for a salary. Platforms like Gusto automate the complex layers of federal, state, and local taxes. To understand your payroll, you must distinguish between Gross Pay (the total amount earned) and Net Pay (what the employee actually receives).
Employee Deductions
When an employee is paid, several items are deducted from their gross pay:
FICA Taxes: This consists of Social Security (6.2%) and Medicare (1.45%), totaling 7.65%.
Federal Income Tax: Calculated based on IRS tax brackets and the employee's W-4 settings.
State/Local Taxes: Depending on the work location, these vary significantly from 0% to over 10%.
The Real Cost for Employers
Employers often overlook that the gross salary isn't the final cost. As a business owner, you are responsible for matching the employee's FICA taxes (7.65%) and paying Federal (FUTA) and State (SUTA) unemployment taxes. For example, if you pay an employee $5,000, your actual out-of-pocket cost is likely closer to $5,400 after employer-side taxes are added.
Example Payroll Scenario
If an employee earns a gross monthly salary of $5,000:
Employee Taxes: Approximately $382.50 for FICA and an estimated $850 for income taxes, leaving a net pay of roughly $3,767.50.
Employer Taxes: You pay an additional $382.50 for FICA plus unemployment insurance.
Total Employer Liability: Approximately $5,412.50.
Using a dedicated system like Gusto ensures these numbers are tracked accurately, filings are submitted on time, and compliance is maintained across different state jurisdictions.
function calculateGustoPayroll() {
var gross = parseFloat(document.getElementById('grossPay').value);
var fedRate = parseFloat(document.getElementById('fedTaxRate').value) / 100;
var stateRate = parseFloat(document.getElementById('stateTaxRate').value) / 100;
if (isNaN(gross) || gross <= 0) {
alert("Please enter a valid gross pay amount.");
return;
}
// FICA is 7.65% (6.2% SS + 1.45% Medicare)
var ficaRate = 0.0765;
// Employee Side
var employeeFica = gross * ficaRate;
var federalWithholding = gross * fedRate;
var stateWithholding = gross * stateRate;
var totalWithholding = federalWithholding + stateWithholding;
var netPay = gross – employeeFica – totalWithholding;
// Employer Side
var employerFica = gross * ficaRate;
// Simplified FUTA/SUTA estimate (usually capped, but we use 1% as a general buffer for calculation)
var unemploymentEst = gross * 0.006;
var totalEmployerCost = gross + employerFica + unemploymentEst;
// Display results
document.getElementById('resGross').innerText = "$" + gross.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resEmployeeFica').innerText = "$" + employeeFica.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resWithholding').innerText = "$" + totalWithholding.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNetPay').innerText = "$" + netPay.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resEmployerFica').innerText = "$" + employerFica.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resUnemployment').innerText = "$" + unemploymentEst.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalCost').innerText = "$" + totalEmployerCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('gustoResults').style.display = 'block';
}