Payroll Tax Calculator

Payroll Tax Components (US, 2024):

Payroll taxes fund Social Security and Medicare. Both the employer and employee pay a share, and this calculator breaks down each portion.

Employee’s share:

• Social Security: 6.2% on the first $168,600 of wages (the wage base cap)
• Medicare: 1.45% on all wages with no limit
• Additional Medicare: 0.9% on wages exceeding $200,000

Employer’s share (matching):

• Social Security: 6.2% on the first $168,600
• Medicare: 1.45% on all wages
• FUTA (Federal Unemployment): 0.6% on the first $7,000

Total FICA rate: 15.3% (7.65% each for employer and employee).

What each variable means:

• Annual Gross Salary — the employee’s total pay before any deductions.
• View As — choose Employee to see what gets deducted from your paycheck, or Employer to see the true cost of hiring someone.

When to use this calculator: Employees use it to understand their paycheck deductions. Employers use it to calculate the real cost of a new hire beyond just salary.

Practical example: An employee earns $60,000 per year. The employee’s share: Social Security = $3,720 (6.2%), Medicare = $870 (1.45%), total = $4,590. The employer pays an additional $4,590 in matching taxes plus $42 in FUTA, making the true cost $64,632.

Common mistakes: Many people forget that FICA is split between employer and employee. Self-employed individuals pay both halves (15.3% total) via self-employment tax. The Social Security wage cap means high earners pay a lower effective FICA rate overall. State unemployment taxes (SUTA) are an additional employer cost not included here, as rates vary by state.