| Wages | $75,000 |
|---|---|
| Social Security, employer (6.2%) | $4,650 |
| Medicare, employer (1.45%) | $1,088 |
| FUTA (0.6% on the first $7,000) | $42 |
| State unemployment (SUI) | $238 |
| Total cost per employee | $81,018 |
| Employer cost on top of wages | 8.0% |
This is an estimate for planning, not tax, legal or accounting advice. Check figures with a qualified professional before you rely on them.
How it works
Wages are only part of what an employee costs. Employers pay their own half of Social Security and Medicare, federal unemployment tax (FUTA) and state unemployment tax (SUI), and often a retirement match, benefits and workers' compensation insurance.
FUTA is shown at 0.6%, which assumes you pay state unemployment tax on time and your state has no FUTA credit reduction. Credit-reduction states pay more, and the 2026 reductions are announced later in the year.
Formula notes
- Social Security (employer) = 6.2% of wages up to the $184,500 2026 wage base. Medicare (employer) = 1.45% of all wages; the 0.9% Additional Medicare Tax is employee-only.
- FUTA = (6.0% − 5.4% credit) = 0.6% of the first $7,000 of wages, at most $42 per employee.
- SUI = state rate × wages up to the state wage base. Rates and bases are set by each state.
- Total = wages + employer taxes + 401(k) match + workers' comp + benefits.
Sources
- IRS Publication 15 (Circular E): employer taxes
- IRS Form 940 instructions (FUTA)
- SSA: 2026 Social Security changes (wage base)
- California EDD: DE 44 (SUI rate and wage base)
- U.S. Department of Labor: state unemployment tax
Estimate, not tax advice. Check figures with a qualified professional before you rely on them.
Common questions
How much do employer payroll taxes add?
Social Security and Medicare alone add 7.65% of wages, up to the Social Security wage base. FUTA and state unemployment tax add a smaller amount on the first few thousand dollars of wages.
Why does SUI differ by employer?
States assign each employer a rate, often based on claims history. New employers usually start at a standard new-employer rate. Enter the rate shown on your state notice.
Are benefits and 401(k) match included?
You can add them as optional inputs. They are not payroll taxes, but they are part of what an employee costs.
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