Payroll Calculator for Employers (True Cost of an Employee)
Calculate what an employee really costs in 2026 — employer Social Security and Medicare (7.65%), FUTA, state unemployment (SUTA), benefits and 401(k) match — per paycheck and per year.
Estimates only — not tax advice. Tax rules change and depend on your situation; check with the tax authority or a tax professional.
How to use
- 1Enter the employee's annual wages.
- 2Enter your state unemployment rate and wage base, benefits and match.
- 3See total employer cost and taxes.
How it's calculated
Employer FICA = 6.2% of wages up to $184,500 + 1.45% of all wages. FUTA = 0.6% of the first $7,000 (after the 5.4% state credit). SUTA = your rate × wages up to your state's wage base.
Frequently asked questions
What is FUTA?
Federal unemployment tax: 6.0% on the first $7,000 per employee, reduced to 0.6% ($42) when you pay state unemployment tax on time — higher in 'credit reduction' states.
What SUTA rate do I use?
Your state assigns it each year (new employers usually 1–4%). The taxable wage base ranges from $7,000 (e.g. California) to over $70,000 (e.g. Washington).
Do I also withhold the employee's taxes?
Yes — employee income tax and their 7.65% FICA come out of their pay; those aren't employer costs.