# How much payroll tax is due?

Computes the payroll tax on one paycheck: the employee’s Social Security and Medicare, and the employer’s matching share, federal unemployment tax (FUTA), and state unemployment tax.

- Page: https://www.acalculator.org/finance/payroll-tax-calculator
- JSON spec: https://www.acalculator.org/finance/payroll-tax-calculator.json
- Version: 1fb271829565

## Default answer

Example with the default inputs (Wages this paycheck $2,500.00, Wages paid so far this year $0.00, Employer pays FUTA Yes, State unemployment tax rate 0%, State unemployment wage base $7,000.00, Pay date September 30, 2026) on the example date Wednesday, September 30, 2026: On $2,500.00 of wages, the payroll tax is $397.50: $191.25 from the employee and $206.25 from the employer.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| wages | Wages this paycheck | Gross pay subject to Social Security and Medicare: before a 401(k), after section 125 health and HSA deductions. |
| ytd | Wages paid so far this year | Wages this employer paid the employee earlier this year: for the Social Security wage base, the $200,000 Additional Medicare line, and the unemployment wage bases. |
| futa | Employer pays FUTA | The employer owes federal unemployment tax (most employers do; some nonprofits and governments do not). |
| sutaRate | State unemployment tax rate | The employer’s state unemployment (SUTA) rate from its state notice. |
| sutaBase | State unemployment wage base | Wages per employee per year that the state unemployment tax applies to. |
| date | Pay date | The date of the paycheck: its year picks the rates and wage base. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| total | Total payroll tax | Employee and employer payroll taxes on this paycheck together. |
| employee | Employee pays | Social Security, Medicare, and Additional Medicare withheld from the paycheck. |
| employer | Employer pays | The employer’s Social Security and Medicare, FUTA, and state unemployment tax. |
| socialSecurity | Social Security (each) | 6.2% of wages up to the wage base, paid by the employee and again by the employer. |
| medicare | Medicare (each) | 1.45% of wages, paid by the employee and again by the employer. |
| additionalMedicare | Additional Medicare (employee) | 0.9% of the year’s wages over $200,000, withheld from the employee only. |
| futaTax | FUTA (employer) | 0.6% net of the first $7,000 of wages in the year. |
| sutaTax | State unemployment (employer) | The state rate on wages up to the state wage base. |
| rates | Tax year | The tax year of the rates used. |

## Method

Employee: Social Security = 6.2% × min(wages, max(0, $184,500 − wages so far)); Medicare = 1.45% × wages; Additional Medicare = 0.9% × min(wages, max(0, wages so far + wages − $200,000)). Employer: the same Social Security and Medicare (no Additional Medicare), FUTA = 0.6% × min(wages, max(0, $7,000 − wages so far)), state unemployment = rate × min(wages, max(0, state base − wages so far)).

## Assumptions

- An estimate, not tax advice. Rates are for 2026 (IRS Publication 15).
- FUTA uses the full 5.4% credit for state unemployment tax paid on time. Credit reduction states (announced each November) and state-run disability or family leave taxes are not modelled.
- Wages are subject to Social Security and Medicare: a traditional 401(k) does not reduce them; section 125 health and HSA deductions do.
- The employer does not match Additional Medicare Tax. The employee’s final Additional Medicare Tax depends on the filing status on the return (Form 8959).

## Worked examples

1. wages = $5,000.00, ytd = $0.00, futa = yes, date = 2026-01-15 gives socialSecurity = $310.00, medicare = $72.50, additionalMedicare = $0.00, futaTax = $30.00, employee = $382.50, employer = $412.50, total = $795.00. Source: IRS Pub 15 (2026) sections 9 and 14.
2. wages = $5,000.00, ytd = $182,000.00, futa = yes, date = 2026-11-15 gives socialSecurity = $155.00, medicare = $72.50, futaTax = $0.00, total = $455.00. Source: IRS Pub 15 (2026) sections 9 and 14.
3. wages = $5,000.00, ytd = $198,000.00, futa = yes, sutaRate = 2.7%, sutaBase = $10,000.00, date = 2026-12-15 gives socialSecurity = $0.00, medicare = $72.50, additionalMedicare = $27.00, sutaTax = $0.00, employee = $99.50, total = $172.00. Source: IRS Pub 15 (2026) sections 9 and 14.
4. wages = $4,000.00, ytd = $5,000.00, futa = yes, sutaRate = 3.4%, sutaBase = $9,000.00, date = 2026-03-15 gives futaTax = $12.00, sutaTax = $136.00, employee = $306.00, employer = $454.00, total = $760.00. Source: IRS Pub 15 (2026) sections 9 and 14.

## FAQ

### What payroll taxes does an employer pay?

The employer matches the employee’s Social Security (6.2%) and Medicare (1.45%), pays federal unemployment tax (FUTA, 0.6% net on the first $7,000 of each employee’s wages), and pays state unemployment tax at the rate its state assigns.

### What payroll taxes come out of an employee’s pay?

Social Security at 6.2% until the year’s wages reach $184,500 (2026), Medicare at 1.45% of all wages, and Additional Medicare Tax at 0.9% on wages over $200,000 in the year. Federal and state income tax withholding also come out, but they are income tax, not payroll tax.

### What is FICA?

FICA is the Federal Insurance Contributions Act: Social Security and Medicare tax. Together they are 7.65% of wages for the employee and 7.65% for the employer, until Social Security stops at the wage base.

### Why did Social Security stop on my paycheck?

Social Security tax applies only to the first $184,500 of wages from one employer in 2026. Once your year-to-date wages pass it, no more is withheld for the rest of the year. With two employers, each withholds up to the base, and you claim the extra back on your tax return.

### How does FUTA work?

FUTA is 6.0% of the first $7,000 of each employee’s wages in the year. Employers that pay their state unemployment tax on time get a credit of up to 5.4%, so most pay 0.6%, at most $42 per employee a year. In a credit reduction state the credit is smaller.

### Do 401(k) contributions reduce payroll tax?

No. Traditional 401(k) deferrals lower income tax but are still subject to Social Security and Medicare. Health premiums and HSA contributions through a section 125 cafeteria plan are not subject to them, so enter wages after those.

## Sources

- IRS, Publication 15 (2026), (Circular E), Employer’s Tax Guide: section 9 (Social Security 6.2% each up to $184,500, Medicare 1.45% each, Additional Medicare 0.9% withheld over $200,000) and section 14 (FUTA). https://www.irs.gov/pub/irs-pdf/p15.pdf
- IRS, Instructions for Form 940 (2025): FUTA 6.0% on the first $7,000, credit up to 5.4%. https://www.irs.gov/instructions/i940
- Social Security Administration, Contribution and Benefit Base ($184,500 for 2026). https://www.ssa.gov/oact/cola/cbb.html