Payroll Calculator
Calculate total employer payroll costs including FICA match, Medicare, and employee take-home pay.
Paycheck Breakdown
- Gross Pay$2,884.62
- Federal Income Tax−$295.00
- California State Tax−$113.11
- Social Security (6.2%)−$89.42
- Medicare (1.45%)−$20.91
- SDI−$31.73
- Net Pay$2,334.44
Employer Payroll Cost
- Employer SS Match (6.2%)$178.85
- Employer Medicare (1.45%)$41.83
How to Calculate Employer Payroll Costs
Total payroll cost includes more than just employee wages. As an employer, you must also pay the employer portion of Social Security (6.2%) and Medicare (1.45%) on each employee's wages. This payroll calculator shows both the employee's take-home pay and your total cost per pay period.
Employer FICA Tax Obligations
Employers match employee Social Security contributions at 6.2% on wages up to $176,100 (2025 wage base). Medicare is matched at 1.45% with no wage limit. Federal Unemployment Tax (FUTA) adds approximately 0.6% on the first $7,000 of each employee's annual wages.
Small Business Payroll Tips
Accurate payroll calculations help you budget for labor costs and stay compliant with IRS requirements. Use this free payroll calculator to estimate costs before hiring, or verify your current payroll provider's calculations.
Frequently Asked Questions
How is federal income tax calculated on my paycheck?
Federal income tax is calculated based on your annual salary, filing status, and the IRS tax brackets. For 2026, the rates range from 10% to 37%. The standard deduction ($16,100 for single filers) is subtracted before applying the brackets.
What is FICA tax?
FICA (Federal Insurance Contributions Act) includes Social Security (6.2% up to $184,500 in wages for 2026) and Medicare (1.45% on all wages). An additional 0.9% Medicare tax applies to income over $200,000 for single filers.
How often is this calculator updated?
Our paycheck calculator is updated annually to reflect the latest IRS tax brackets, standard deductions, and Social Security wage base for the current tax year.
Is this paycheck calculator accurate?
Yes. Our calculator uses the official IRS Publication 15-T withholding tables and the latest state tax rates for all 50 states. Results are estimates and may vary slightly from your actual paycheck depending on your employer's exact withholding method.