Calculate Employer Payroll Tax Costs
Calculate total employer payroll tax burden. FICA, FUTA, SUTA, and workers comp by state.
Employer Payroll Tax Breakdown
FICA (Social Security + Medicare): 7.65% of gross pay (6.2% SS on first $168,600 + 1.45% Medicare on all earnings). This is the employer match — employees pay the same 7.65%. FUTA (Federal Unemployment): 0.6% on first $7,000 per employee ($42/employee/year after state credit). SUTA (State Unemployment): Varies by state and employer history (0.5-5.4% on first $7,000-56,500 depending on state).
Total Employer Tax Burden
For a $65,000 employee: FICA match ~$4,973 + FUTA ~$42 + SUTA ~$200-1,500 + Workers Comp ~$325-2,600 = $5,540-9,115 total (8.5-14% above salary). This is the minimum employer cost beyond salary — before benefits, overhead, or any other expenses. Payroll taxes are non-negotiable costs that must be factored into every hiring decision.
The employer FICA match (7.65%) is an invisible tax that most employees never see. On a $65,000 salary, the employer pays $4,973 in FICA on top of your salary. Self-employed individuals pay both halves (15.3% total), which is why self-employment tax feels so much more painful than employee withholding.
