Payroll Tax Calculator for Employers (2026)

Your payroll

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Where the employees work.

Pay frequency Weekly (52 a year)Every two weeks (26 a year)Twice a month (24 a year)Monthly (12 a year)Quarterly (4 a year)Twice a year (2 a year)Daily (260 a year)

Employee 1

Annual wages

$

Pre-tax health premiums (section 125), per year

$

Add an employee (up to 20)

State unemployment rate and FUTA credit reduction

State unemployment (SUTA) rate

%

Prefilled with the state’s 2026 new-employer rate. Use the rate on your state notice if you have one.

FUTA credit reduction

%

Only for credit reduction states. Prefilled for California and the U.S. Virgin Islands with the Labor Department’s potential 2026 rate.

Update result

Employer payroll tax per year

$4,875.04

8.13% of $60,000 in wages

First payroll

$252.70

Average payroll

$187.50

Social Security and Medicare

$4,590.04

FUTA

$42.00

Texas unemployment

$243.00

• FUTA and state unemployment tax stop at their wage bases, so the first payrolls of the year cost the most.

Payroll tax calculator results: per payroll and per year

The first payroll of the year costs $252.70 for one $60,000 Texas employee paid biweekly, and the average payroll $187.50, because FUTA and state unemployment tax stop at their wage bases. The employee’s withheld share sits in its own block: you withhold it, but it isn’t your cost.

Employer payroll tax by salary

Employer payroll tax on one Texas employee is 8.13% of a $60,000 salary. The share falls as pay rises, because FUTA and state tax are capped and Social Security stops at $184,500.

Employer payroll tax by state

On a $60,000 employee, the state changes only the unemployment tax: its new-employer rate times its wage base. Where a state assigns rates by industry or publishes no single 2026 rate we could verify, the table says so and the calculator asks for the rate on your state notice instead of guessing.

How do you calculate payroll taxes?

Multiply each employee’s wages by 6.2% for Social Security (up to $184,500) and 1.45% for Medicare, add 0.6% FUTA on the first $7,000, then add your state rate on its wage base.

1. Social Security: 6.2% of each employee’s wages, up to $184,500 a year.
2. Medicare: 1.45% of all wages, with no cap.
3. FUTA: 6% on the first $7,000, less a credit of up to 5.4% for paying state unemployment tax, so 0.6%, or $42 per employee. California employers pay more: its potential 2026 credit reduction is 5.3%, an estimate until the Labor Department sets final rates after November 10, 2026.
4. State unemployment tax: your state rate times wages up to the state wage base.

What are payroll taxes on $1,000?

On $1,000 of weekly wages, the employer owes $76.50 in Social Security and Medicare, and $109.50 in all on the first payroll of the year in Texas once FUTA and state tax are added. The employee has the same $76.50 withheld, plus income tax.

How much payroll tax is withheld at $70,000?

An employee on $70,000 a year has $5,355 of Social Security and Medicare withheld in 2026, and the employer pays the same amount again as its match. Income tax withholding depends on the employee’s W-4; the Texas paycheck calculator shows it.

Why does the first payroll cost more?

The first payrolls of the year cost the most because FUTA applies only to each employee’s first $7,000 of wages, and state unemployment tax only up to the state wage base ($9,000 in Texas). Once an employee passes both, only Social Security and Medicare remain, until Social Security stops at $184,500.

Who files these taxes for you?

A payroll service files Form 941 every quarter, Form 940 every year and your state unemployment returns. Compare payroll software for small business, or see payroll for one employee if this is your first hire. To add salary and benefits to these taxes, see the total cost of an employee; for a 1099 hire, see the cost of a contractor instead.

Method and sources

Federal rates come from IRS Publication 15 (2026). State rates come from each state’s own unemployment agency, linked in the state table. We use a state’s published 2026 new-employer rate; employers with an experience rate should enter the rate on their state notice.

• IRS Pub. 15 (2026) (opens in a new tab), checked October 23, 2026
• IRS Pub. 15 (2026) (opens in a new tab), checked October 23, 2026
• DOL potential 2026 credit reductions (opens in a new tab), checked October 23, 2026