Payroll Tax Calculator
Estimate employee and employer payroll (FICA) taxes on gross wages, kept clearly separate, plus the total cost of employment. Uses the Social Security wage base and Medicare rates for the selected year.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Total employment cost
Enter gross wages greater than zero.
What a payroll tax calculator does
Payroll taxes sit between an employee's gross salary and both the paycheck they receive and the cost their employer bears. A payroll tax calculator makes both sides visible: what is withheld from the worker, what the employer pays on top, and the true total cost of the role. Whether you are an employee checking your payslip, a founder budgeting a hire, or a bookkeeper reconciling FICA, seeing the split rather than a single lumped figure is what turns a confusing deduction into a number you can plan around.
The employee side
Withheld from each paycheck are 6.2% Social Security on wages up to the annual wage base, 1.45% Medicare on all wages, and a 0.9% additional Medicare surtax on wages above the filing-status threshold. These are flat on each dollar of wages (up to the Social Security cap), which makes them simpler than income tax but also regressive at the top, since the Social Security portion stops while wages keep rising.
The employer side
The employer pays a matching 6.2% Social Security and 1.45% Medicare — the additional Medicare surtax is employee-only. This match is a genuine cost of employment, not a deduction from the worker, and it is one reason a job pays less in salary than it costs the business. Understanding it explains why employers weigh total cost, not headline salary, when they hire.
Total employment cost
Add the employer's share to gross wages and you get the total cost of employment — the figure that belongs in a hiring budget. For a $70,000 salary, the employer's FICA share pushes the real cost several thousand dollars higher before any benefits, equipment or overhead. Planning headcount on salary alone understates the commitment; planning on total cost does not.
Worked example
Take an employee earning $5,000 a month. The employee has 6.2% ($310) withheld for Social Security and 1.45% ($72.50) for Medicare, and the employer pays the same amounts again as its own cost. So the worker's FICA is about $382.50 and the employer's is another $382.50, making the combined payroll tax on that month roughly $765 — before any income tax withholding. The calculator lays out each figure so nothing is buried.
Where this connects
For the employee's net pay after income tax and these payroll taxes, use the take-home pay calculator. Self-employed people pay both halves themselves — see the self-employment tax calculator. And when you are sizing the cost of growing a team, pair total employment cost with the business loan calculator and startup runway calculator.
Frequently asked questions
What are payroll taxes?
In the US, payroll (FICA) taxes fund Social Security and Medicare. Employees and employers each pay 6.2% Social Security on wages up to the annual wage base and 1.45% Medicare on all wages; employees also pay a 0.9% additional Medicare surtax above high-income thresholds. They are separate from federal income tax, which is withheld on top.
What is the difference between employee and employer payroll tax?
Employees have their share withheld from each paycheck, so they see it on the payslip. Employers pay a matching share as a cost of employment on top of wages — money the employee never sees. This calculator shows both sides separately so neither is hidden, plus the combined total.
What is total employment cost?
Gross wages plus the employer's payroll taxes — the real cost to the business of employing someone at that salary, before benefits. A $60,000 salary costs the employer noticeably more than $60,000 once the employer's FICA share is added, which is why headcount budgeting should use total cost, not salary.
Does the Social Security tax apply to all wages?
No. The 6.2% Social Security portion only applies up to an annual wage base; wages above the cap are not subject to it, though the 1.45% Medicare portion continues on every dollar. High earners therefore see their payroll-tax rate fall once they pass the wage base partway through the year.
Do payroll taxes include unemployment or state taxes?
This calculator covers federal FICA (Social Security and Medicare). Employers typically owe additional federal and state unemployment taxes (FUTA/SUTA) and some states levy their own payroll or disability taxes. Those vary by state and are not included here.
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Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Estimates based on the selected tax year. State/local payroll taxes and unemployment insurance are not included. Not tax advice.