~1 min read
Employer payroll taxes add roughly 8–12% to the cost of every employee on top of their base salary. For a $75,000 employee, that means $6,000–$9,000 in additional mandatory taxes per year.
US employer payroll taxes (2024)
| Tax | Rate | Wage base |
|---|---|---|
| Social Security (employer) | 6.2% | First $160,200 |
| Medicare (employer) | 1.45% | Uncapped |
| FUTA (Federal Unemployment) | 0.6%* | First $7,000 |
*After state unemployment tax credit. Actual FUTA rate is 6%, reduced by up to 5.4% credit.
State taxes not included
This calculator covers federal payroll taxes only. Most states have additional State Unemployment Tax (SUTA) with rates ranging from 0.1% to 10%+ depending on the employer's experience rating.
Total cost of employment
The fully-loaded cost of an employee includes: - Base salary - Employer payroll taxes (~8–10%) - Health insurance contribution ($5,000–$15,000/year) - 401(k) match (3–5% of salary) - Equipment, software, office space
For budgeting purposes, assume 1.25–1.40× base salary as total employment cost.