Payroll Tax Calculator for Small Business
Hiring employees? This calculator shows the true cost of payroll — employee take-home, employer payroll taxes, FUTA, SUTA, and the total employer cost per employee.
Payroll Tax Calculator
Calculate employee take home pay and total employer costs for small business payroll
Disclaimer: Federal withholding uses simplified flat 12% estimate. Actual withholding depends on W-4 elections and IRS tables. State tax rate is user-entered. SUTA rate estimated at 2.7% (varies by state and employer experience rating, wages capped at $7,000 for this calculation). 401(k) deductions are pre tax. FUTA applies to first $7,000 of wages ($42 max/year). Consult your payroll provider for exact calculations.
Frequently Asked Questions
How much does an employee really cost beyond their salary?+
Add 25-40% on top of gross salary for: employer FICA (7.65%), FUTA (0.6% on first $7,000), SUTA (varies by state, 1-5%), health insurance ($6,000-18,000/year), 401k match (3-6%), and workers comp. A $60k employee costs $75,000-$85,000 total.
What payroll taxes does a small business pay?+
Employer payroll taxes: (1) Employer FICA: 7.65% of wages (6.2% Social Security + 1.45% Medicare). (2) FUTA: 0.6% on first $7,000. (3) SUTA: varies by state (1-5%). (4) State payroll taxes in some states (CA, NJ, PA, etc.). Total employer payroll taxes: ~8-10% of wages.
Should I use a payroll service or do it myself?+
Use a payroll service ($40-150/month) unless you have very simple payroll (1-2 employees, same hours). Services handle tax deposits, filings, W-2s, and compliance. Mistakes in payroll tax filing result in penalties. Popular options: Gusto, ADP Run, Paychex.
How much does an employee really cost beyond their salary?
Add 25-40% on top of gross salary for: employer FICA (7.65%), FUTA (0.6% on first $7,000), SUTA (varies by state, 1-5%), health insurance ($6,000-18,000/year), 401k match (3-6%), and workers comp. A $60k employee costs $75,000-$85,000 total.