Employer FICA: the 7.65% employees never see
Every wage dollar carries two FICA charges, and employees only feel half. The employer matches the worker’s 6.2% Social Security up to the 2026 wage base of $184,500 and the 1.45% Medicare with no ceiling — 7.65% on top of gross wages, uncapped for Medicare. Above the wage base, only Medicare continues (plus the employee-side 0.9% additional tax, which the employer does not match but must withhold once YTD wages cross $200,000). On a $60,000 salary that is $4,590 of employer FICA; on a $250,000 salary it is $15,524. This line alone is why "salary + 25-30%" is the standard loaded-cost rule of thumb.
FUTA and SUTA: the unemployment layer
Federal unemployment tax (FUTA) is 6.0% on the first $7,000 of each employee’s wages — but a full 5.4% credit for employers who pay state unemployment on time drops the real FUTA rate to 0.6%, $42 per employee per year. State UI (SUTA) is the bigger and more variable number: rates run from roughly 0.3% to over 11% depending on your experience rating (how many former employees drew benefits), against a taxable wage base that ranges from $7,000 in several states to nearly $60,000 in Washington. New employers start at the standard new-employer rate until they build history. The calculator takes your actual SUTA rate and base — both are on last quarter’s state UI return — because state averages are useless for a real payroll budget.
The true cost table behind a $60,000 hire
Gross $60,000 → employer FICA $4,590 → FUTA $42 → SUTA at 2.7% of a $12,000 base = $324 → workers’ compensation premium (rate varies wildly by industry, ~$300-600 for office work). Total government-mandated burden: roughly $5,250, or about 8.8% on top of gross — before benefits, equipment and the recruiting cost nobody budgets. Per biweekly paycheck the employer-side taxes add $202. That is the honest planning number, and it is why contractors at 1099 rates price 25-40% above employee-equivalent wages: they carry both FICA halves themselves, which the self-employed calculator shows from the contractor’s side of the same transaction.
Household employers: the same rules, smaller scale
Pay a nanny, housekeeper or senior caregiver $2,800+ in 2026 (the domestic worker threshold) and you are an employer: 7.65% employer FICA, federal and state unemployment, and W-2 obligations — no 1099 shortcut for household work performed in your home under your direction. The "nanny tax" on a $40,000 nanny adds roughly $3,060 of employer FICA plus UI; many families discover the liability at tax time via Schedule H. Two legitimate softeners: your childcare expenses may simultaneously earn the Child and Dependent Care Credit (up to 20-35% of $3,000-6,000 of qualifying costs), and paying above the table is the one option that is not a softener — the penalties and the lost Social Security credits for the worker both compound. Run the same calculator; the arithmetic does not care who the employee is.
Timing and remittance: when the money leaves
Employer payroll taxes are remitted on a schedule set by your total liability: monthly depositors pay mid-month for the prior month; a $100,000+ same-day liability triggers next-day deposit. Annual reconciliation runs through Forms 941 (quarterly), 940 (FUTA) and W-2/W-3 in January, and state UI returns quarterly with rates refreshed each January 1. Two 2026 practical notes: the Social Security wage base rose to $184,500 (from $176,100), so high-salary payrolls see employer FICA rise about $520 per worker at the top; and states adjust SUTA bases annually — the wage base you enter should be this year’s, not last year’s, because every dollar of stale base understates the true cost. Payroll software handles the calendar; the budgeting number this calculator produces is what the software spends.
Estimates for planning only — not tax, legal or accounting advice. Your actual return depends on facts this tool does not ask about. Figures are based on IRS Revenue Procedure 2025-32 (tax year 2026), verified October 2026.