Free payroll tax calculator. Calculate Social Security, Medicare, and additional Medicare taxes for both employee and employer. 2025 wage base and rates.
The Payroll Tax Calculator computes the full payroll tax burden for both employees and employers based on gross wages. Payroll taxes fund Social Security and Medicare and are split between the employee and employer, each paying half of the total FICA rate.
For 2025, the Social Security tax rate is 6.2% on wages up to $176,100 (wage base), and the Medicare tax is 1.45% on all wages with an additional 0.9% on wages exceeding $200,000 for the employee. Understanding the combined payroll tax helps both workers check their pay stubs and employers plan total compensation cost.
Enter the gross annual wages to see the complete breakdown for both sides. Payroll taxes are the single largest tax many workers pay, often exceeding federal income tax for earners below $50,000. Understanding the employer-side cost is equally important because it represents the true cost of employment beyond the salary figure. For business owners and hiring managers, knowing that each employee costs an additional 7.65% in employer payroll taxes affects budgeting, hiring decisions, and compensation structuring. This calculator makes both sides transparent and easy to compare.
Payroll taxes are the second-largest revenue source for the federal government. Employees need to verify their pay stub deductions are correct, and employers need to calculate total labor cost including their matching contribution. This calculator shows both perspectives clearly. For employers, understanding the full cost per employee is essential for accurate budgeting, hiring decisions, and compensation planning.
Employee SS Tax = Min(Wages, $176,100) × 6.2% Employer SS Tax = Min(Wages, $176,100) × 6.2% Employee Medicare = Wages × 1.45% + Max(0, Wages – $200,000) × 0.9% Employer Medicare = Wages × 1.45% (no additional Medicare for employer) Total Payroll Tax = Employee Share + Employer Share
Result: Employee: $9,180 | Employer: $9,180 | Total: $18,360
On $120,000 wages: SS tax = $120,000 × 6.2% = $7,440 each. Medicare = $120,000 × 1.45% = $1,740 each. No additional Medicare (under $200k). Employee total = $9,180. Employer total = $9,180. Combined payroll tax = $18,360 (15.3% effective rate).
Employers should consider total compensation cost, which includes wages plus their share of payroll taxes. For a $100,000 salary, the employer pays an additional $7,650 in FICA taxes, plus FUTA, state unemployment taxes, and any benefits. The true cost of an employee is typically 20-30% above their salary.
Once wages exceed the SS wage base ($176,100), the effective payroll tax rate drops because no more SS tax is owed. The remaining Medicare tax (1.45% + 0.9% additional above $200k) continues on all earnings. This means the payroll tax rate is regressive — it takes a higher percentage of lower wages.
If you work for multiple employers, each employer withholds SS tax independently up to the wage base. If your combined wages exceed $176,100, excess SS tax can be claimed as a credit on your tax return (Form 1040, line 11).
Payroll taxes (FICA) fund Social Security and Medicare and are a flat percentage of wages. Income tax uses progressive brackets and funds general government operations. Both are withheld from paychecks, but payroll tax applies equally to all earnings (up to the SS cap) regardless of deductions.
Yes. The employer matches the employee's Social Security (6.2%) and Medicare (1.45%) taxes. However, the employer does NOT pay the additional 0.9% Medicare tax on wages over $200,000. The employer's share is an additional cost on top of the employee's gross wages.
The Social Security wage base for 2025 is $176,100. Earnings above this amount are not subject to the 6.2% Social Security tax. Medicare tax has no wage base limit — it applies to all earnings.
The additional 0.9% Medicare tax applies to wages exceeding $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. Only the employee pays this — the employer does not match it.
Generally no — payroll taxes are not refundable on your tax return. However, if you work for multiple employers and your combined SS wages exceed the wage base, you can claim a credit for the excess SS tax withheld on your Form 1040.
Self-employed workers pay both halves through the self-employment tax (15.3% total: 12.4% SS + 2.9% Medicare). They can deduct the employer equivalent half (7.65%) as an above-the-line deduction on their tax return. The calculation uses 92.35% of net SE income as the base.