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Employer payroll taxes in 2026

Updated 2026-09-21 · 2026 IRS and Social Security figures · how we calculate

Employers generally withhold employee taxes from pay and also pay separate employer taxes. The two sides are related, but they are not the same bill.

Employer Social Security and Medicare

For covered wages in 2026, the employer generally pays 6.2% Social Security up to the $184,500 wage base and 1.45% Medicare with no wage limit. These amounts generally accompany the withheld employee shares on Form 941. There is no employer match for Additional Medicare Tax.

FUTA

FUTA is paid by the employer rather than withheld from the employee. The statutory rate is 6% on the first $7,000 of FUTA wages per employee. The usual maximum state unemployment credit is 5.4%, leaving an effective 0.6% rate when the full credit applies. Employers report FUTA on Form 940.

SUTA and other state employer costs

State unemployment tax is separate. Its wage base, new-employer rate, experience rating and industry adjustments vary by state and employer. Some states also have paid-leave, disability or other payroll programs with an employer share. Use official state account notices rather than a generic national rate.

Withholding is not an employer expense

Federal income tax and the employee shares of Social Security and Medicare are withheld from employee wages and remitted by the employer; they are not added again as employer compensation cost. The employer's own FICA shares and FUTA are additional costs.

Estimate, then reconcile through payroll records

Use the employer payroll tax calculator for a federal estimate and the employee cost calculator for benefits and productive-hour planning. Actual deposits and returns depend on taxable-wage definitions, deposit schedules, credits and employer facts that a short public calculator cannot determine.

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