Employer Payroll Tax Calculator 2026
Created by: Emma Collins
Last updated:
Calculate employer payroll taxes for 2026: Social Security and Medicare match, FUTA and state unemployment tax, per employee and in total. Works for nanny and household employees.
Employer Payroll Tax Calculator
FinanceCalculate the employer’s share of Social Security and Medicare plus federal and state unemployment tax.
Each earning the wage above
From your state rate notice
Taxable wages per employee in your state
0 unless your state is a credit reduction state
Employer payroll tax rates for 2026
| Tax | Employer rate | Wages it applies to |
|---|---|---|
| Social Security | 6.2% | Up to $184,500 per employee |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% after the 5.4% state credit | First $7,000 per employee |
| State unemployment (SUTA) | Varies by state and employer | State wage base |
Employees pay their own 6.2% Social Security and 1.45% Medicare through withholding, plus 0.9% Additional Medicare on wages over $200,000. Employers do not match the additional 0.9%.
Examples
A business pays an employee $50,000 in 2026 in a state with a 2.7% unemployment rate on the first $7,000. Employer taxes are $3,100 Social Security, $725 Medicare, $42 FUTA and $189 state unemployment: $4,056 in total, so the employee costs $54,056.
A family paying a nanny $30,000 owes $2,295 in Social Security and Medicare, $42 FUTA and state unemployment tax, reported on Schedule H.
Related calculators
See the employee's side with the take-home pay calculator, or compare hiring with contracting in the 1099 vs W-2 calculator.
Frequently asked questions
How much payroll tax does an employer pay?
In 2026, employers pay 6.2% Social Security on wages up to $184,500, 1.45% Medicare on all wages, 0.6% federal unemployment tax on the first $7,000, and state unemployment tax. On a $50,000 employee with a 2.7% state rate that is about $4,056, or 8.11% of wages.
What is the FUTA tax rate?
FUTA is 6.0% of the first $7,000 of each employee’s wages, but employers that pay state unemployment tax on time get a credit of up to 5.4%, leaving 0.6%, or $42 per employee. The credit is smaller in credit reduction states that owe the federal government for unemployment loans.
When do I owe nanny tax?
If you pay a household employee $3,000 or more in cash wages in 2026, you owe Social Security and Medicare on all their wages. FUTA applies if you pay household employees $1,000 or more in any calendar quarter. You report these on Schedule H with your Form 1040.
Does the employer pay the employee’s share too?
No. The employer withholds the employee’s 6.2% Social Security and 1.45% Medicare from their pay and matches it. Some families choose to pay the nanny’s share as well; that extra amount counts as additional wages.
What is my state unemployment rate?
Each state assigns new employers a starting rate and adjusts it based on layoff history. Your state labor or workforce agency lists the new-employer rate and taxable wage base on its website and on your annual rate notice.