Payroll Tax Calculator – Federal & FICA Tax Estimator 2024
Calculate payroll taxes including Social Security, Medicare, and federal income tax withholding.
Payroll Taxes: Employer and Employee Obligations
Payroll taxes fund Social Security, Medicare (FICA), and federal/state unemployment insurance. Both employees and employers pay FICA taxes; the employer matches the employee contribution, effectively doubling the Social Security and Medicare taxes collected on each dollar of wages.
| Tax | Employee Rate | Employer Rate | Wage Base (2025) |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | ,100 |
| Medicare | 1.45% | 1.45% | No cap |
| Additional Medicare | 0.9% | None | Over ,000 |
| FUTA (unemployment) | None | 6.0%* | ,000 |
*FUTA is reduced to 0.6% in states with approved unemployment programs (most states). Self-employed individuals pay both the employee and employer share of FICA (15.3% combined), but can deduct the employer-equivalent half on their federal tax return.
What is FICA tax?
FICA (Federal Insurance Contributions Act) includes Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of wages for each employee, with the employer matching identically. The combined FICA rate is 15.3% of gross wages.
Does payroll tax have a cap?
Social Security tax applies only to the first ,100 of wages (2025). Once you earn above this amount, Social Security withholding stops for the year. Medicare has no wage cap, and high earners pay an additional 0.9% Medicare surtax above ,000.