Payroll Tax Calculator

Mandatory taxes withheld from an employee’s wages and matched by the employer to fund government programs like Social Security, Medicare, unemployment insurance, and more.

These taxes are calculated as a percentage of wages and must be paid on a regular schedule. Staying compliant means calculating, withholding, filing, and paying these taxes accurately and on time every pay period.

Employees are responsible for paying Social Security and Medicare taxes (FICA), which are automatically withheld from their paychecks.

Employers must match FICA contributions and pay additional taxes, like federal (FUTA) and state unemployment taxes (SUTA). Employers are also responsible for collecting, depositing, and reporting all payroll taxes to the appropriate agencies.

To stay compliant with federal, state, and local payroll tax laws, small businesses must:
• Accurately classify employees vs. contractors
• Withhold the correct tax amounts
• File tax forms (like 941s, W-2s, and 1099s) on time
• Pay taxes to the IRS, state departments, and local agencies
• Stay updated on tax rate changes and new regulations

Automating payroll fixes the common errors like misclassifying employees as contractors, missing tax deposit or filing deadlines, using outdated tax rates after annual updates, and underreporting or withholding inaccurate wages.

Check with the IRS or your state’s Department of Revenue for the current payroll tax rates at the start of the calendar year—or just use our Payroll Tax Calculator which reflects the latest rates in real time.

The Payroll Tax Calculator empowers business owners to make smarter financial decisions and stay compliant. Use it to estimate total tax liability, avoid underpayment penalties, and accurately budget for labor costs across multiple states.

No, but not for the reason you think. Contractors pay self-employment tax directly to the IRS, covering both their employee and employer share.

So there’s no need for you to calculate your contractor’s tax withholding; they’ll handle it on their own.

Yes! Select a state in the calculator to apply that appropriate income tax withholding rules, along with any state-specific employer taxes like state unemployment insurance (SUTA).

Tax treatment varies significantly by state. For example, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on wages at all, while most others use either a flat rate or a graduated bracket system similar to federal withholding.

Local taxes apply on top of state tax in certain jurisdictions. For example, in New York City an employee’s city of residence adds another layer of withholding beyond state and federal tax.

Gross pay is total earnings before anything is withheld.
In the calculator, enter gross earnings and select Compute Net to estimate net pay.

Net pay (sometimes called “take-home pay”) is what’s left after taxes come out.
In the calculator, enter a target net pay and select Compute Gross to estimate the gross pay needed to achieve that amount.