Varies significantly by state and employer history.
Maximum annual wage subject to FUTA per employee (often $7,000).
Maximum annual wage subject to SUTA per employee (varies by state).
Estimated Payroll Taxes
Federal Unemployment Tax (FUTA): $0.00
State Unemployment Tax (SUTA): $0.00
Total Estimated Payroll Taxes: $0.00
Understanding Employer Payroll Taxes
As an employer, calculating and remitting payroll taxes is a critical responsibility. These taxes fund various social insurance programs at the federal and state levels. This calculator focuses on the unemployment taxes, specifically Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA), which are paid by the employer.
Federal Unemployment Tax (FUTA)
The Federal Unemployment Tax Act (FUTA) requires employers to pay a federal tax on the wages paid to their employees. This tax helps fund state unemployment agencies and provides for federal administration of the unemployment insurance program.
Key Components:
Standard Rate: The standard FUTA tax rate is 6.0%.
Wage Base: This tax is applied up to a certain amount of wages paid to each employee per calendar year. The federal wage base is typically $7,000 per employee.
Credit Reduction: Employers can receive an integrated credit of up to 5.4% if they pay their state unemployment taxes on time. This means the net federal unemployment tax rate is often 0.6% (6.0% – 5.4%), unless the state has taken certain actions that cause a credit reduction.
For example, if an employee earns $50,000 in a year and the FUTA wage base is $7,000, FUTA is calculated on $7,000. If the standard rate is 6.0% and the employer qualifies for the full 5.4% credit, the net FUTA tax is $7,000 * 0.6% = $42.
State Unemployment Tax (SUTA)
Similar to FUTA, SUTA taxes are levied by individual states to fund their respective unemployment insurance programs. These taxes are also paid by employers.
Key Components:
Varying Rates: SUTA rates differ significantly by state and are often experience-rated. This means employers with a history of higher employee turnover or unemployment claims may pay higher rates than those with stable workforces. Rates can range from less than 1% to over 10% in some cases.
State Wage Base: Each state also sets its own wage base, which is the maximum annual wage per employee subject to SUTA. This varies widely; some states have bases similar to FUTA ($7,000), while others have much higher bases (e.g., $10,000, $15,000, or more).
For example, if an employee earns $50,000 and the state's SUTA wage base is $12,000 with a rate of 2.7%, the SUTA tax for that employee would be $12,000 * 2.7% = $324.
Important Considerations for Employers
Filing and Payment: FUTA taxes are typically filed quarterly and paid annually or quarterly. SUTA taxes are usually filed and paid monthly or quarterly, depending on the state.
Employee Wages: It's crucial to track wages per employee to know when they reach the respective FUTA and SUTA wage bases.
New Employers: New employers typically start with a standard SUTA rate determined by their state, often higher than experienced employers, until they establish an employment record.
Taxable Wages: Ensure you understand which types of compensation are considered taxable wages for FUTA and SUTA purposes in your jurisdiction.
Other Payroll Taxes: This calculator *only* covers FUTA and SUTA. Employers are also responsible for withholding and remitting federal income tax, state income tax (if applicable), Social Security tax (OASDI), and Medicare tax, as well as potentially contributing to state disability insurance or other programs.
This calculator provides an estimate based on the inputs provided. Always consult official IRS and state tax agency resources or a qualified tax professional for precise calculations and compliance.
function calculatePayrollTaxes() {
var grossWages = parseFloat(document.getElementById("grossWages").value);
var federalUnemploymentRate = parseFloat(document.getElementById("federalUnemploymentRate").value);
var stateUnemploymentRate = parseFloat(document.getElementById("stateUnemploymentRate").value);
var futaWageBase = parseFloat(document.getElementById("futaWageBase").value);
var sutaWageBase = parseFloat(document.getElementById("sutaWageBase").value);
var errorMessageElement = document.getElementById("error-message");
errorMessageElement.style.display = 'none'; // Hide previous errors
// Input validation
if (isNaN(grossWages) || grossWages < 0 ||
isNaN(federalUnemploymentRate) || federalUnemploymentRate < 0 ||
isNaN(stateUnemploymentRate) || stateUnemploymentRate < 0 ||
isNaN(futaWageBase) || futaWageBase <= 0 ||
isNaN(sutaWageBase) || sutaWageBase <= 0) {
errorMessageElement.textContent = "Please enter valid positive numbers for all fields.";
errorMessageElement.style.display = 'block';
// Reset results if there's an error
document.getElementById("futaTax").textContent = "$0.00";
document.getElementById("sutaTax").textContent = "$0.00";
document.getElementById("totalTaxAmount").textContent = "$0.00";
return;
}
// Calculate taxable wages for FUTA
var taxableWagesFUTA = Math.min(grossWages, futaWageBase);
// Calculate FUTA tax
var futaTax = taxableWagesFUTA * (federalUnemploymentRate / 100);
// Calculate taxable wages for SUTA
var taxableWagesSUTA = Math.min(grossWages, sutaWageBase);
// Calculate SUTA tax
var sutaTax = taxableWagesSUTA * (stateUnemploymentRate / 100);
// Calculate total tax
var totalTaxAmount = futaTax + sutaTax;
// Display results, formatted to two decimal places
document.getElementById("futaTax").textContent = "$" + futaTax.toFixed(2);
document.getElementById("sutaTax").textContent = "$" + sutaTax.toFixed(2);
document.getElementById("totalTaxAmount").textContent = "$" + totalTaxAmount.toFixed(2);
}