👥 Payroll Calculator
Calculate employee net pay, federal tax withholding, FICA deductions, and your true employer payroll costs for 2025.
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Employee & Pay Details
Pay Information
$
Employee Tax Info (W-4)
Additional Withholding
$
$
Reduces taxable income but not FICA.
YTD (Optional — Affects SS Cap)
$
$
📋 What This Calculator Shows
- Employee's net take-home pay after all deductions
- Federal income tax withholding (simplified percentage method)
- Employee FICA: Social Security (6.2%) + Medicare (1.45%)
- Employer's matching FICA + FUTA federal unemployment tax
- Your true cost to employ this person per paycheck
Employee Net Pay
—
Enter pay details to calculate
Enter gross pay to see the payroll breakdown.
Federal only. State/local taxes not included. Consult a payroll provider for full compliance.
What Does an Employee Really Cost?
Many small business owners forget to factor in the employer's share of payroll taxes when budgeting for a new hire. Here's what you owe on top of the employee's gross pay:
Employer Payroll Tax Summary (2025)
| Tax | Rate | Wage Base | Who Pays |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | First $176,100 | Employer matches employee 6.2% |
| Medicare (HI) | 1.45% | No limit | Employer matches employee 1.45% |
| FUTA (Federal Unemployment) | 0.6%* | First $7,000 | Employer only |
| SUTA (State Unemployment) | Varies | Varies by state | Employer only |
*FUTA rate is 6.0% minus a 5.4% credit for state unemployment taxes, resulting in an effective rate of 0.6% for most employers who pay SUTA on time.
Rule of Thumb: Budget approximately 7–8% above an employee's gross wages for employer payroll taxes (federal only). Add state SUTA (typically 1–5% for new employers) for your true total cost. So a $50,000/year employee costs you roughly $53,500–$55,000 in employer costs, before benefits.
Employer Payroll Tax Deadlines
Federal Payroll Tax Filing & Deposit Deadlines
| Form / Action | Deadline | Notes |
|---|---|---|
| Federal tax deposits (FICA + withholding) | Semi-weekly or monthly | Depends on deposit schedule — use EFTPS |
| Form 941 (Quarterly) | Apr 30, Jul 31, Oct 31, Jan 31 | Quarterly employer tax return |
| Form 944 (Annual) | January 31 | Small employers with annual liability ≤ $1,000 |
| FUTA (Form 940) | January 31 | Annual federal unemployment return |
| W-2 to employees | January 31 | Must mail/provide by Jan 31 |
| W-2 to SSA | January 31 | File W-2/W-3 with Social Security Administration |
| Form 1099-NEC (contractors) | January 31 | For contractors paid $600+ in the year |
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