Calculate your estimated employment taxes based on your gross income.
Your Estimated Employment Taxes
—
Social Security Tax: —
Medicare Tax: —
Note: This is an estimation. Actual tax liability may vary based on individual circumstances, deductions, and specific tax laws.
Social Security tax rate is 6.2% on income up to the annual limit ($168,600 for 2024).
Medicare tax rate is 1.45% on all earned income.
Understanding Employment Taxes
Employment taxes are mandatory contributions levied by the government on employers and employees. These taxes fund various social insurance programs designed to provide financial support to individuals in certain situations. The two primary components of employment taxes for employees in the United States are Social Security tax and Medicare tax, often collectively referred to as FICA taxes (Federal Insurance Contributions Act).
Social Security Tax
Social Security tax is used to fund retirement, disability, and survivor benefits. For employees, the tax rate is 6.2% of their gross earnings. However, there is an annual wage base limit, meaning this tax is only applied up to a certain income threshold. For 2024, this limit is $168,600. Any income earned above this limit is not subject to Social Security tax.
Calculation:
If Income Subject to Social Security ≤ $168,600 (2024 limit): Social Security Tax = Income Subject to Social Security × 6.2%
If Income Subject to Social Security > $168,600 (2024 limit): Social Security Tax = $168,600 × 6.2%
Medicare Tax
Medicare tax funds the federal health insurance program for individuals aged 65 and older, as well as for younger people with certain disabilities. Unlike Social Security tax, there is no income limit for the Medicare tax. Employees pay a rate of 1.45% on all their earned income.
Calculation: Medicare Tax = Income Subject to Social Security × 1.45%
Total Employment Taxes
The total employment taxes for an employee are the sum of their Social Security tax and Medicare tax contributions.
Calculation: Total Employment Taxes = Social Security Tax + Medicare Tax
Use Cases for This Calculator
Budgeting: Helps individuals estimate their net pay by deducting estimated employment taxes from their gross income.
Financial Planning: Assists in understanding the impact of income changes on tax obligations.
Comparison: Useful for comparing job offers by estimating the take-home pay after taxes.
Tax Awareness: Educates users about the components and rates of FICA taxes.
Remember, this calculator provides an estimate for FICA taxes only and does not include federal income tax, state income tax (if applicable), or other potential deductions. Always consult with a qualified tax professional for personalized advice.
var socialSecurityLimit2024 = 168600;
var socialSecurityRate = 0.062; // 6.2%
var medicareRate = 0.0145; // 1.45%
function calculateEmploymentTaxes() {
var grossIncomeInput = document.getElementById("grossIncome");
var incomeSubjectToSSInput = document.getElementById("incomeSubjectToSS");
var grossIncome = parseFloat(grossIncomeInput.value);
var incomeSubjectToSS = parseFloat(incomeSubjectToSSInput.value);
var resultDiv = document.getElementById("result");
var totalTaxesDisplay = document.getElementById("totalTaxes");
var socialSecurityTaxDisplay = document.getElementById("socialSecurityTax");
var medicareTaxDisplay = document.getElementById("medicareTax");
// Clear previous results
totalTaxesDisplay.textContent = "–";
socialSecurityTaxDisplay.textContent = "Social Security Tax: –";
medicareTaxDisplay.textContent = "Medicare Tax: –";
// Input validation
if (isNaN(grossIncome) || grossIncome < 0) {
alert("Please enter a valid positive number for Gross Annual Income.");
return;
}
if (isNaN(incomeSubjectToSS) || incomeSubjectToSS grossIncome) {
alert("Income Subject to Social Security cannot be greater than Gross Annual Income.");
return;
}
var calculatedSocialSecurityTax = 0;
var calculatedMedicareTax = 0;
var calculatedTotalTaxes = 0;
// Calculate Social Security Tax
var taxableSSIncome = Math.min(incomeSubjectToSS, socialSecurityLimit2024);
calculatedSocialSecurityTax = taxableSSIncome * socialSecurityRate;
// Calculate Medicare Tax
calculatedMedicareTax = incomeSubjectToSS * medicareRate;
// Calculate Total Taxes
calculatedTotalTaxes = calculatedSocialSecurityTax + calculatedMedicareTax;
// Display results
totalTaxesDisplay.textContent = "$" + calculatedTotalTaxes.toFixed(2);
socialSecurityTaxDisplay.textContent = "Social Security Tax: $" + calculatedSocialSecurityTax.toFixed(2);
medicareTaxDisplay.textContent = "Medicare Tax: $" + calculatedMedicareTax.toFixed(2);
}