Enter the total gross wages paid to an employee for the period.
Typically 6.0%, but can be lower with state tax credits.
Maximum annual wages subject to FUTA tax per employee.
Varies significantly by state and employer's history.
Varies by state.
Employer's share of Social Security tax.
Maximum annual wages subject to Social Security tax per employee for the current year.
Employer's share of Medicare tax. No wage limit.
Estimated Payroll Taxes
Total Taxes for this employee's wages
Understanding Employer Payroll Taxes
As an employer, accurately calculating and remitting payroll taxes is a critical responsibility. These taxes fund vital social programs like Social Security and Medicare, as well as unemployment benefits. This calculator helps estimate the employer's portion of these taxes for a given employee's wages, considering various federal and state-specific parameters.
Key Components of Employer Payroll Taxes:
Federal Unemployment Tax Act (FUTA): This federal tax funds state unemployment agencies and helps pay unemployment benefits. The standard FUTA tax rate is 6.0% on the first $7,000 of wages paid to each employee per year. However, employers may receive a credit of up to 5.4% if they pay state unemployment taxes in full and on time, resulting in an effective FUTA rate of 0.6%.
Calculation:MIN(Gross Wages for Period, FUTA Wage Base - Accumulated Wages So Far) * (FUTA Rate / 100)
(Note: This calculator simplifies by assuming the wage base hasn't been met for the period's calculation. A full payroll system tracks accumulated wages.)
State Unemployment Tax (SUTA): This state-level tax also funds unemployment benefits. Rates vary significantly by state and are often experience-based, meaning employers with a history of fewer layoffs may pay lower rates. Each state has its own wage base limit.
Calculation:MIN(Gross Wages for Period, SUTA Wage Base - Accumulated Wages So Far) * (SUTA Rate / 100)
(Note: Similar to FUTA, this calculator assumes the wage base isn't an issue for the current period's calculation.)
Social Security Tax: This tax funds retirement, disability, and survivor benefits. For employers, the rate is 6.2% of the employee's gross wages up to an annual wage base limit. For 2023, this limit is $160,200. Any wages earned by an employee above this threshold are not subject to Social Security tax.
Calculation:MIN(Gross Wages for Period, Social Security Wage Base - Accumulated Wages So Far) * (Social Security Rate / 100)
Medicare Tax: This tax funds federal health insurance for seniors and people with disabilities. The employer's portion is 1.45% of all an employee's gross wages, with no annual wage base limit.
Calculation:Gross Wages for Period * (Medicare Rate / 100)
How to Use the Calculator:
Enter the Gross Wages for the specific employee for the pay period you are calculating.
Input the correct FUTA Rate and FUTA Wage Base. The standard FUTA rate is 6.0%, but often employers benefit from credits, making the effective rate 0.6%. The wage base is typically $7,000.
Enter the State Unemployment Tax (SUTA) Rate and its corresponding Wage Base. These figures are specific to your state.
Confirm the Social Security Tax Rate (employer's share is 6.2%) and the Social Security Wage Base for the current year.
Enter the Medicare Tax Rate (employer's share is 1.45%).
Click "Calculate Taxes". The calculator will display the total estimated payroll taxes the employer is responsible for on those wages.
Disclaimer: This calculator provides an estimate based on the inputs provided. It does not account for all possible tax regulations, state-specific nuances, or accumulated wages towards wage bases within a pay period or year. For precise calculations and compliance, consult with a payroll professional or refer to official IRS and state tax publications.
function calculatePayrollTaxes() {
var errorMessageDiv = document.getElementById("error-message");
errorMessageDiv.style.display = "none";
errorMessageDiv.innerHTML = "";
var grossWages = parseFloat(document.getElementById("grossWages").value);
var futaRate = parseFloat(document.getElementById("futaRate").value);
var futaWageBase = parseFloat(document.getElementById("futaWageBase").value);
var stateUnemploymentRate = parseFloat(document.getElementById("stateUnemploymentRate").value);
var stateUnemploymentWageBase = parseFloat(document.getElementById("stateUnemploymentWageBase").value);
var socialSecurityRate = parseFloat(document.getElementById("socialSecurityRate").value);
var socialSecurityWageBase = parseFloat(document.getElementById("socialSecurityWageBase").value);
var medicareRate = parseFloat(document.getElementById("medicareRate").value);
if (isNaN(grossWages) || grossWages < 0 ||
isNaN(futaRate) || futaRate < 0 ||
isNaN(futaWageBase) || futaWageBase <= 0 ||
isNaN(stateUnemploymentRate) || stateUnemploymentRate < 0 ||
isNaN(stateUnemploymentWageBase) || stateUnemploymentWageBase <= 0 ||
isNaN(socialSecurityRate) || socialSecurityRate < 0 ||
isNaN(socialSecurityWageBase) || socialSecurityWageBase <= 0 ||
isNaN(medicareRate) || medicareRate < 0) {
errorMessageDiv.innerHTML = "Please enter valid positive numbers for all fields.";
errorMessageDiv.style.display = "block";
document.getElementById("result").style.display = "none";
return;
}
// — Simplified Calculations —
// These calculations assume the wage base has NOT been met for the period.
// A real payroll system would track YTD wages to accurately apply wage bases.
// FUTA Tax Calculation
var taxableFutaWages = Math.min(grossWages, futaWageBase);
var futaTax = taxableFutaWages * (futaRate / 100);
// SUTA Tax Calculation
var taxableSutaWages = Math.min(grossWages, stateUnemploymentWageBase);
var sutaTax = taxableSutaWages * (stateUnemploymentRate / 100);
// Social Security Tax Calculation
var taxableSocialSecurityWages = Math.min(grossWages, socialSecurityWageBase);
var socialSecurityTax = taxableSocialSecurityWages * (socialSecurityRate / 100);
// Medicare Tax Calculation
var medicareTax = grossWages * (medicareRate / 100); // No wage base for Medicare
var totalTaxes = futaTax + sutaTax + socialSecurityTax + medicareTax;
document.getElementById("totalTaxes").innerHTML = "$" + totalTaxes.toFixed(2);
document.getElementById("result").style.display = "block";
}