Payroll Tax Calculator
Updated August 2026 · Free · No sign-up
Estimate US payroll taxes (FICA) on any gross pay: Social Security and Medicare for both the employee and the employer, including the Additional Medicare surtax for high earners and the wage-base cap.
Quick answer: Employee FICA = 7.65% of gross pay: 6.2% Social Security (up to the annual wage base) + 1.45% Medicare (no cap). On a $2,500 paycheck that's $191.25 — and the employer pays a matching $191.25, making the combined payroll tax 15.3%.
What Payroll Taxes Are (and Aren't)
US payroll taxes — formally FICA, the Federal Insurance Contributions Act — fund Social Security and Medicare. They are flat-rate taxes on wages, separate from income tax: income tax withholding depends on your W-4, filing status, and brackets, while FICA takes the same percentage from the first dollar (with one cap and one surtax described below). Self-employed people pay both halves as SECA — 15.3% — with a deduction for the employer-equivalent portion.
Current FICA Structure
| Tax | Employee | Employer | Wage limit |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | Annual wage base — rises most years; enter the current figure in the calculator |
| Medicare | 1.45% | 1.45% | None |
| Additional Medicare | 0.9% | — | On wages above $200,000/year (withholding threshold) |
| FUTA (federal unemployment) | — | 6.0% on first $7,000 (usually 0.6% after state credit) | First $7,000 |
| SUTA (state unemployment) | — (most states) | Varies by state and employer history | State wage bases |
Verify current-year figures at IRS Topic 751 — the Social Security wage base changes almost every January.
Worked Examples
Example 1 — ordinary paycheck. Gross $2,500, under all thresholds: Social Security $155.00 + Medicare $36.25 = $191.25 employee FICA; employer matches $191.25.
Example 2 — crossing the wage base. An employee with $170,000 YTD gets a $10,000 check against a $176,100 base: only $6,100 is SS-taxable ($378.20), while Medicare applies to all $10,000 ($145). Late-year paychecks for high earners visibly grow when SS stops.
Example 3 — Additional Medicare. With $195,000 YTD, a $10,000 check crosses $200,000: the last $5,000 bears the extra 0.9% ($45) on top of regular Medicare — employee-only, no employer match.
Reading Your Paystub: Where FICA Hides
Paystubs label these lines variously: "OASDI", "SS", "FED OASDI/EE" for Social Security; "MED", "FED MED/EE" for Medicare. Quick self-audit: OASDI should equal exactly 6.2% of FICA-taxable gross (which may be less than total gross — see pre-tax items below), and MED exactly 1.45%. Discrepancies usually trace to pre-tax benefit deductions rather than payroll errors.
What Reduces FICA-Taxable Wages
- Section 125 "cafeteria plan" items: employer-sponsored health, dental, vision premiums, FSA and HSA payroll contributions — these reduce both income tax and FICA wages.
- Notably NOT 401(k): traditional 401(k) contributions reduce income tax withholding but remain fully FICA-taxable — a distinction that surprises almost everyone.
- Commuter benefits up to IRS monthly limits.
This is why maximizing an HSA through payroll beats contributing directly: payroll HSA contributions skip the 7.65% FICA, direct contributions don't.
The Employer's Side: True Cost of a Hire
Every wage dollar costs the employer roughly $1.0765 in FICA alone, plus FUTA/SUTA and benefits. For a $60,000 hire: ~$4,590 FICA match + ~$420 FUTA + SUTA (varies, often $300–2,000) — payroll taxes add 8–12% before insurance and benefits. Budgeting rule of thumb: loaded cost ≈ salary × 1.25–1.4. Pair with the FTE calculator for workforce budgeting, and with the cost of turnover calculator to see why replacing rather than retaining is so expensive.
Supplemental Wages: Bonuses, Severance, PTO Payouts
Lump sums are FICA-taxable like any wages, and federal income tax on them is typically withheld at the flat 22% supplemental rate. That combination is why a PTO payout or severance check looks so heavily taxed — roughly 30%+ vanishes in withholding — even though your true annual tax reconciles at filing. FICA never refunds through filing, with one exception: if two employers each withheld Social Security past the wage base, the excess comes back on your return.
Payroll Tax vs Income Tax at a Glance
| Payroll tax (FICA) | Income tax | |
|---|---|---|
| Rate structure | Flat 7.65% (+0.9% surtax) | Progressive brackets |
| Starts from | First dollar | After standard deduction |
| Controlled by W-4? | No | Yes |
| Employer match | Yes — equal | No |
| Funds | Social Security & Medicare | General federal budget |
Frequently Asked Questions
What percentage is payroll tax?
Employees pay 7.65% (6.2% Social Security + 1.45% Medicare); employers match it, for 15.3% combined. Wages above $200,000 add 0.9% employee-only Medicare.
What is the Social Security wage base?
The annual cap on wages subject to the 6.2% Social Security tax — it rises most years with national wage growth. Check ssa.gov each January and update the figure in this calculator.
Do employers pay payroll taxes too?
Yes — a matching 6.2% + 1.45%, plus FUTA and state unemployment taxes employees never see. Payroll taxes add roughly 8–12% to every salary before benefits.
Is payroll tax the same as income tax?
No. FICA is a flat-rate tax funding Social Security and Medicare from the first dollar. Income tax is progressive, controlled by your W-4, and funds the general budget.
Does 401(k) reduce payroll tax?
No — traditional 401(k) contributions are exempt from income tax withholding but fully subject to FICA. Health premiums, FSA, and payroll HSA contributions do reduce FICA wages.
What is the Additional Medicare Tax?
An extra 0.9% on wages above $200,000 (withholding threshold), employee-only with no employer match. Final liability depends on filing status at tax time.
How is payroll tax calculated for self-employed people?
Self-employment (SECA) tax is 15.3% — both halves — on net self-employment earnings, with the Social Security portion capped at the wage base and a deduction for the employer-equivalent half.
Why did Social Security tax stop on my paycheck?
You crossed the annual wage base. The 6.2% OASDI stops for the rest of the year; Medicare continues on every dollar. Withholding resumes the next January.
Are bonuses subject to payroll tax?
Yes — bonuses, severance, and PTO payouts are FICA-taxable wages. Federal income tax on them typically withholds at the 22% flat supplemental rate, reconciling at filing.
Can I get overpaid Social Security tax back?
Only in the multi-employer case: if two jobs together withheld past the wage base, claim the excess on your tax return. A single employer must fix over-withholding itself.
✓ Formula verified • Last updated: August 20, 2026