About the Payroll Calculator
This payroll calculator shows what a US pay run costs your business and what your employees take home. Enter the number of employees, average gross pay per employee for the period, your pay frequency and year-to-date wages already paid. It calculates the employer’s Social Security and Medicare, federal unemployment (FUTA) and state unemployment (SUTA) taxes, the employee’s FICA withholding and an estimate of income tax withholding, then totals the cash you need for payroll.
Small-business owners use it to budget each payroll, check a payroll provider’s figures, and plan cash flow for the year — the annual projection shows the full-year employer cost for your current headcount. Year-to-date wages matter because Social Security, FUTA and SUTA stop once an employee’s wages for the year reach their wage bases.
Figures use 2026 federal rules: 6.2% Social Security each for employer and employee on wages up to $184,500, 1.45% Medicare each with no cap, 0.9% Additional Medicare withheld from employees on wages over $200,000, and 0.6% FUTA on the first $7,000. Income tax withholding is a flat-percentage estimate; exact amounts depend on each employee’s Form W-4 and IRS Publication 15-T.
With the default inputs, the total payroll cost (this period) is $11,095.00. Change any value above to recalculate instantly.
How to use the payroll calculator
- 1Enter how many employees are on this pay run and their average gross pay.
- 2Choose your pay frequency.
- 3Enter year-to-date wages per employee so wage-base caps are applied.
- 4Enter your state unemployment rate and wage base.
- 5Adjust estimated income tax withholding, then review total cost and net pay.
Formula and method
For each employee the employer pays Social Security at 6.2% on wages up to the annual wage base, Medicare at 1.45% of all wages, FUTA at 0.6% on the first $7,000 of the year and SUTA at your state rate up to the state wage base. Year-to-date wages decide how much of this period’s pay is still under each cap.
The employee has the same 6.2% Social Security and 1.45% Medicare withheld, plus 0.9% Additional Medicare on wages above $200,000 for the year, and income tax withholding (estimated here as a flat percentage). Net pay is gross pay minus those withholdings; the tax deposit is everything withheld plus the employer’s taxes.
- SS wages
- Gross pay still under the $184,500 Social Security wage base
- FUTA wages
- Gross pay still under the $7,000 FUTA wage base
- SUTA wages
- Gross pay still under your state wage base
Worked examples
Five employees paid $2,000 biweekly (first run of the year)
Gross wages are $10,000. The employer adds $620 Social Security, $145 Medicare, $60 FUTA and $270 SUTA — $1,095 — for a total cost of $11,095. Employees have $765 FICA and $1,600 income tax withheld, taking home $7,635.
High earner late in the year
With $190,000 already paid, this employee is past the Social Security, FUTA and SUTA wage bases, so the employer owes only $290 Medicare. The employee pays $290 Medicare plus $90 Additional Medicare on the $10,000 above $200,000.
12 weekly employees crossing the $7,000 FUTA base
Only $500 of each $900 paycheck is still under the $7,000 FUTA and SUTA bases, so FUTA is $3 and SUTA $13.50 per employee. Across 12 employees the run costs $10,800 in wages plus $1,024.20 of employer taxes.
Frequently asked questions
What payroll taxes do employers pay?+
US employers pay the employer half of FICA (6.2% Social Security up to the wage base and 1.45% Medicare), federal unemployment tax (FUTA) and state unemployment tax (SUTA). Some states and cities add further payroll taxes such as disability or transit taxes.
How much does payroll cost on top of wages?+
Employer FICA adds 7.65% of wages, and FUTA and SUTA add more until each employee passes those wage bases — with a 2.7% SUTA rate that is about 10.95% of wages early in the year, falling toward 7.65% later. Benefits and workers’ comp add more.
What is the difference between FUTA and SUTA?+
FUTA is the federal unemployment tax, 6.0% on the first $7,000 of each employee’s wages, usually reduced to 0.6% by a credit for state taxes paid. SUTA is your state’s unemployment tax, with rates and wage bases set by each state and your claims history.
When does Social Security tax stop?+
Both employer and employee Social Security tax stop once the employee’s wages for the calendar year reach the wage base — $184,500 for 2026. Medicare has no wage cap.
How is federal income tax withholding calculated?+
Employers use the employee’s Form W-4 and the percentage-method or wage-bracket tables in IRS Publication 15-T. This calculator uses a flat estimated percentage; use a paycheck calculator for an individual employee’s exact withholding.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.