Payroll Tax Calculator
Calculate employee and employer payroll taxes (Social Security and Medicare) on wages, with editable rates and Social Security wage base.
How to use this tool
- Enter annual wages subject to payroll tax.
- Confirm or update the Social Security and Medicare rates per side.
- Set the Social Security wage base for your year.
- Read employee tax, employer tax, total tax, and the employer's all-in cost.
Calculate Social Security and Medicare payroll taxes for both the employee and the employer. Enter wages and the rates; the Social Security wage cap is applied automatically.
Formula
Social Security (each side) = min(Wages, Wage base) × SS rate
Medicare (each side) = Wages × Medicare rate (no cap)
Employee tax = Employer tax = Social Security + Medicare
Total payroll tax = Employee + Employer | Employer cost = Wages + Employer tax
How it works
Payroll taxes fund Social Security and Medicare and are split between the employee and the employer, who each pay an equal share. The Social Security portion applies only up to an annual wage base, after which no further Social Security tax is due; the Medicare portion has no cap and applies to all wages. This calculator computes both sides and the employer's all-in cost of an employee (wages plus the employer's matching tax).
The standard United States rates are 6.2% Social Security and 1.45% Medicare per side, but each rate and the wage base are editable so the tool stays correct across years and jurisdictions with similar employer/employee splits. The calculator omits the Additional Medicare Tax (an extra employee-only rate on high earners) and federal/state unemployment taxes (FUTA/SUTA), which apply only to employers on a separate wage base; add those separately if you need a complete labor-cost figure.
Reviewed by the AbraCalc Tax Desk. This calculator provides general information, not tax advice; confirm current rates and rules with your tax authority (for the United States, the IRS).
Worked example
$60,000 wages (US rates)
- Wages are below the wage base, so Social Security (each) = 60,000 × 6.2% = 3,720.
- Medicare (each) = 60,000 × 1.45% = 870.
- Employee tax = 3,720 + 870 = 4,590; employer pays the same 4,590.
- Total payroll tax = 4,590 + 4,590 = 9,180.
- Total employer cost = 60,000 + 4,590 = 64,590.
Total payroll tax = $9,180.00 (employee $4,590.00 + employer $4,590.00)
Payroll tax by wages (US rates, $168,600 wage base)
| Annual wages | Employee tax | Employer tax | Total tax |
|---|---|---|---|
| $30,000 | $2,295.00 | $2,295.00 | $4,590.00 |
| $60,000 | $4,590.00 | $4,590.00 | $9,180.00 |
| $100,000 | $7,650.00 | $7,650.00 | $15,300.00 |
| $150,000 | $11,475.00 | $11,475.00 | $22,950.00 |
| $168,600 | $12,897.90 | $12,897.90 | $25,795.80 |
| $200,000 | $13,353.20 | $13,353.20 | $26,706.40 |
| $250,000 | $14,078.20 | $14,078.20 | $28,156.40 |
Key terms
- Payroll tax
- Taxes on wages that fund Social Security and Medicare, shared by employer and employee.
- FICA
- The Federal Insurance Contributions Act, the US law imposing Social Security and Medicare payroll taxes.
- Wage base
- The annual cap on wages subject to the Social Security portion of payroll tax.
- Employer match
- The employer's equal share of Social Security and Medicare, paid on top of wages.
Frequently asked questions
- Who pays payroll tax — me or my employer?
- Both. Employees and employers each pay an equal share of Social Security and Medicare. Self-employed people pay both halves themselves as self-employment tax.
- Why does Social Security stop at a wage base?
- Social Security benefits are capped, so the tax that funds them is capped too. Once wages pass the annual wage base, no further Social Security tax is owed, though Medicare keeps applying.
- Does this include unemployment taxes?
- No. FUTA and SUTA are employer-only taxes on a separate, lower wage base and vary by state. Add them separately if you need total employer labor cost.