Payroll Calculator.

Calculate employee take-home pay alongside total employer payroll tax costs (FICA match, FUTA, and SUTA).

Employee Gross Annual Salary

State

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SUTA Tax Rate (Employer)

New businesses are assigned a default state rate (typically 2.7%), which adjusts over time based on your unemployment claims history.

SUTA Wage Base

The maximum taxable earnings per employee per year for State Unemployment Tax.

Frequently Asked Questions

What payroll taxes do employers pay?

Employers must pay three main payroll taxes: a matching 6.2% Social Security tax, a matching 1.45% Medicare tax, and unemployment taxes including FUTA (federal, flat 0.6% up to $7,000) and SUTA (state unemployment tax, which varies based on employer history and state wage bases).

What is FUTA?

FUTA stands for the Federal Unemployment Tax Act. It is an employer-paid tax used to fund state unemployment agencies. The standard rate is 6.0% on the first $7,000 of an employee's annual wages, but is typically reduced to 0.6% via credit matching.

Understanding Employer Payroll Tax Obligations

Hiring a W-2 employee is an exciting milestone for any small business, but it comes with financial obligations that extend far beyond the employee's base salary or hourly wage. In the United States, employers are legally required to contribute to various federal and state tax programs for every person on their payroll. Failing to budget for these hidden labor costs can disrupt cash flow and lead to compliance issues. Using a payroll calculator helps you estimate the true cost of employment.

The True Cost of a W-2 Employee

To calculate the total cost of hiring an employee, you must add mandatory employer payroll taxes to their gross base wages. The primary tax components include:

FICA Contribution Matching: Just like employees, employers pay a matching share of FICA taxes. You must contribute 6.2% for Social Security (up to the $184,500 wage base limit in 2026) and 1.45% for Medicare (on all wages with no cap). Note that the additional 0.9% high-earning Medicare surtax is paid solely by the employee.
Federal Unemployment Tax Act (FUTA): FUTA funds federal-level unemployment benefits. The standard rate is 6.0% on the first $7,000 of an employee's annual wages. Fortunately, employers who pay state unemployment taxes on time receive a maximum FUTA tax credit of 5.4%, reducing the effective FUTA rate to 0.6% (or $42 per employee annually).
State Unemployment Tax Act (SUTA): SUTA is paid entirely by the employer to fund state-level unemployment systems. SUTA rates and wage limits vary dramatically by state. New employers are assigned a default rate, which is subsequently adjusted based on the company's employee turnover and claim history.

How an Employer Payroll Tax Calculator Simplifies Budgeting

Many business owners overlook these expenses when designing compensation packages. By inputting wage rates and geographical locations into a payroll tax calculator, you get a clean breakdown of FICA matches, FUTA caps, and state SUTA obligations.

Integrating these calculations into your regular business forecasting ensures you maintain healthy profit margins and stay fully compliant with all IRS and state department of labor regulations.

Why MyPaycheckCalculator is Better

If you are looking for a private, faster Payroll Cost Calculator or search for a secure ADP payroll calculator alternative, we offer a modern, uncluttered alternative. Here is how our utility compares to legacy traditional options:

Recommended

MyPaycheckCalculator Advantage

Calculate FICA matching, FUTA, and SUTA burdens instantly on one page.
Completely private: no corporate or employee data is uploaded.
Instant results for 2026 tax standards, loaded in under 200ms.

Legacy Calculator Drawbacks

Monetized by collecting business contact details for corporate sales calls.
Heavy platform code and multi-tab steps delay calculations.
Complex navigation for simple small-business employer tax modeling.