(Includes Social Security: 6.2% up to wage base; Medicare: 1.45% with no limit)
(This is your withholding rate, not your total tax rate)
(Employer's share, typically matching employee FICA)
(Federal Unemployment Tax Act – Rate varies, common is 6.0% on first $7,000 of wages per employee)
(State Unemployment Tax Act – Rate varies significantly by state and employer experience)
Employee Taxes:
Employer Taxes:
Understanding Payroll Tax Calculations
Payroll taxes are mandatory contributions deducted from an employee's wages and paid to the government,
along with contributions from the employer. These taxes fund programs like Social Security, Medicare,
unemployment benefits, and other government services. Calculating payroll taxes accurately is crucial
for both employers (to ensure compliance) and employees (to understand their take-home pay).
Key Components of Payroll Taxes:
FICA Taxes (Federal Insurance Contributions Act): This includes Social Security and Medicare taxes. Both employees and employers typically split this burden.
Income Tax Withholding: This is a portion of an employee's earnings that is withheld by the employer and sent to the government on behalf of the employee. The rate is determined by the employee's W-4 form and is an estimate of their annual income tax liability.
Unemployment Taxes: These are typically paid solely by the employer.
FUTA (Federal Unemployment Tax Act): Funds federal and state unemployment programs.
SUTA (State Unemployment Tax Act): Funds state-specific unemployment benefits. Rates vary by state and employer.
How the Calculator Works:
This calculator simplifies the process by using common tax rates. It calculates the following:
Employee FICA Tax: Calculated as a percentage of the gross pay. For example, a 7.65% rate means 6.2% for Social Security (up to an annual wage limit) and 1.45% for Medicare (no wage limit). The calculator uses a simplified rate for illustrative purposes.
Employee Income Tax Withholding: Calculated as a percentage of the gross pay, representing the amount withheld for federal and state income taxes based on the employee's declaration.
Employer FICA Tax: Usually matches the employee's FICA contribution, contributing an equal amount to Social Security and Medicare.
Employer Unemployment Taxes (FUTA & SUTA): Calculated based on the provided rates. Note that FUTA and SUTA often have wage bases (e.g., the first $7,000 or $9,000 of an employee's annual wages). This calculator uses the given percentage for simplicity, assuming the gross pay is within the taxable wage base for the period.
Total Taxes: The sum of all employee and employer taxes.
Example Calculation:
Let's assume:
Gross Pay: $1,200.00 (Weekly)
Employee FICA: 7.65%
Employee Income Tax: 15%
Employer FICA: 7.65%
Employer FUTA: 6.0% (applied to first $7,000 annually – simplified here)
Employer SUTA: 2.7% (simplified here)
Employee Taxes:
Employee FICA: $1,200.00 * 7.65% = $91.80
Employee Income Tax: $1,200.00 * 15% = $180.00
Total Employee Taxes: $91.80 + $180.00 = $271.80
Employer Taxes:
Employer FICA: $1,200.00 * 7.65% = $91.80
Employer FUTA: $1,200.00 * 6.0% = $72.00
Employer SUTA: $1,200.00 * 2.7% = $32.40
Total Employer Taxes: $91.80 + $72.00 + $32.40 = $196.20
Total Payroll Taxes for the period: $271.80 (Employee) + $196.20 (Employer) = $468.00
Important Considerations:
Tax rates and wage bases can change annually. Always refer to the latest IRS and state guidelines.
This calculator is a simplified tool and does not account for all potential deductions, specific state/local taxes, or complex wage situations (like bonuses, commissions, or overtime).
Consult with a payroll professional or tax advisor for precise calculations and compliance.
function calculatePayrollTaxes() {
var grossPay = parseFloat(document.getElementById("grossPay").value);
var employeeFICA = parseFloat(document.getElementById("employeeFICA").value) / 100;
var employeeIncomeTax = parseFloat(document.getElementById("employeeIncomeTax").value) / 100;
var employerFICA = parseFloat(document.getElementById("employerFICA").value) / 100;
var employerUnemploymentFUTA = parseFloat(document.getElementById("employerUnemploymentFUTA").value) / 100;
var employerUnemploymentSUTA = parseFloat(document.getElementById("employerUnemploymentSUTA").value) / 100;
var resultElement = document.getElementById("result");
var totalTaxesElement = document.getElementById("totalTaxes");
var employeeTaxesElement = document.getElementById("employeeTaxes");
var employerTaxesElement = document.getElementById("employerTaxes");
// Reset previous results
resultElement.style.display = "none";
totalTaxesElement.textContent = "";
employeeTaxesElement.textContent = "";
employerTaxesElement.textContent = "";
// Validate inputs
if (isNaN(grossPay) || grossPay <= 0) {
alert("Please enter a valid Gross Pay.");
return;
}
if (isNaN(employeeFICA) || employeeFICA < 0) {
alert("Please enter a valid Employee FICA Tax Rate.");
return;
}
if (isNaN(employeeIncomeTax) || employeeIncomeTax < 0) {
alert("Please enter a valid Employee Income Tax Rate.");
return;
}
if (isNaN(employerFICA) || employerFICA < 0) {
alert("Please enter a valid Employer FICA Tax Rate.");
return;
}
if (isNaN(employerUnemploymentFUTA) || employerUnemploymentFUTA < 0) {
alert("Please enter a valid Employer FUTA Rate.");
return;
}
if (isNaN(employerUnemploymentSUTA) || employerUnemploymentSUTA < 0) {
alert("Please enter a valid Employer SUTA Rate.");
return;
}
// — Calculations —
var calculatedEmployeeFICA = grossPay * employeeFICA;
var calculatedEmployeeIncomeTax = grossPay * employeeIncomeTax;
var totalEmployeeTaxes = calculatedEmployeeFICA + calculatedEmployeeIncomeTax;
var calculatedEmployerFICA = grossPay * employerFICA;
var calculatedEmployerFUTA = grossPay * employerUnemploymentFUTA; // Simplified: assumes gross pay is within wage base
var calculatedEmployerSUTA = grossPay * employerUnemploymentSUTA; // Simplified: assumes gross pay is within wage base
var totalEmployerTaxes = calculatedEmployerFICA + calculatedEmployerFUTA + calculatedEmployerSUTA;
var grandTotalTaxes = totalEmployeeTaxes + totalEmployerTaxes;
// Display results
totalTaxesElement.textContent = "$" + grandTotalTaxes.toFixed(2);
employeeTaxesElement.textContent = "$" + totalEmployeeTaxes.toFixed(2);
employerTaxesElement.textContent = "$" + totalEmployerTaxes.toFixed(2);
resultElement.style.display = "block";
// Update example numbers in the article
document.querySelector('.example-gross-pay').textContent = grossPay.toFixed(2);
document.querySelector('.example-fica-rate').textContent = (employeeFICA * 100).toFixed(2);
document.querySelector('.example-income-tax-rate').textContent = (employeeIncomeTax * 100).toFixed(2);
document.querySelector('.example-employer-fica-rate').textContent = (employerFICA * 100).toFixed(2);
document.querySelector('.example-futa-rate').textContent = (employerUnemploymentFUTA * 100).toFixed(2);
document.querySelector('.example-suta-rate').textContent = (employerUnemploymentSUTA * 100).toFixed(2);
document.querySelector('.example-employee-fica-calc').textContent = calculatedEmployeeFICA.toFixed(2);
document.querySelector('.example-employee-income-tax-calc').textContent = calculatedEmployeeIncomeTax.toFixed(2);
document.querySelector('.example-total-employee-taxes-calc').textContent = totalEmployeeTaxes.toFixed(2);
document.querySelector('.example-employer-fica-calc').textContent = calculatedEmployerFICA.toFixed(2);
document.querySelector('.example-employer-futa-calc').textContent = calculatedEmployerFUTA.toFixed(2);
document.querySelector('.example-employer-suta-calc').textContent = calculatedEmployerSUTA.toFixed(2);
document.querySelector('.example-total-employer-taxes-calc').textContent = totalEmployerTaxes.toFixed(2);
document.querySelector('.example-grand-total-calc').textContent = grandTotalTaxes.toFixed(2);
}