Employer payroll tax calculator 2026
Enter one employee's annual taxable wages to estimate the employer share of federal Social Security and Medicare plus FUTA.
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% effective rate) | $42.00 |
| Federal employer payroll taxes | $4,632.00 |
FUTA applies here to $7,000.00 of wages. The entered effective rate assumes any state unemployment credit you qualify for.
What the employer pays federally
For 2026, the employer share of Social Security is 6.2% of covered wages up to $184,500. Employer Medicare is 1.45% with no wage limit. The employee's 0.9% Additional Medicare Tax has no employer match.
FUTA's statutory rate is 6% on the first $7,000 of wages. Most employers receive the full 5.4% state unemployment credit, making the usual effective rate 0.6% — no more than $42 per employee before any credit reduction.
Why the FUTA rate can be higher
The full credit depends on the employer's state unemployment coverage and timely payments. Credit-reduction states are announced after the November 10 determination date, so the final 2026 rate may not be known earlier in the year. Enter the effective rate that applies to you; this tool does not assume a state-specific reduction.
What this estimate leaves out
State unemployment tax (SUTA), paid-leave or disability programs, workers' compensation, local employer taxes and wage exemptions vary by employer and state. They are deliberately not guessed. Use the cost of an employee calculator to add known benefits and other annual costs.
Federal employer figures checked 2026-09-22. This is a planning estimate, not a payroll return.
Sources
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits, FUTA coverage and employer filing responsibilities
- IRS — FUTA credit reduction — 6.0% statutory FUTA rate, first $7,000 of wages, usual 5.4% credit and credit-reduction-state timing
- IRS — Social Security and Medicare withholding rates — 6.2% employer Social Security and 1.45% employer Medicare; no employer match for Additional Medicare Tax
Questions
How much are employer payroll taxes?
For a typical covered employee in 2026, the federal employer portion starts with 6.2% Social Security up to the wage base, 1.45% Medicare on all covered wages, and FUTA. State and employer-specific charges are additional.
Does the employer match Additional Medicare Tax?
No. The IRS states there is no employer match for the employee's 0.9% Additional Medicare Tax.
Does this include SUTA?
No. SUTA rates and wage bases vary by state and often by the employer's experience rating, so this federal calculator does not invent a rate.