Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Calculate combined employee and employer FICA payroll tax obligations from annual wages.
$9180.00
The Paycheck Calculator shows an employee's own FICA withholding, but that's only half the real payroll tax picture -- employers are legally required to match Social Security and Medicare contributions dollar-for-dollar. This calculator shows both halves and the combined total, the view an employer (or a self-employed person estimating what both halves cost, absent the self-employment tax's specific 92.35% adjustment) needs.
Enter the employee's annual wages.
Employer Share = 6.2% Social Security (capped at the wage base) + 1.45% Medicare (uncapped)
Employee Share = the same amount + 0.9% Additional Medicare Tax on wages above $200,000 (not matched by the employer)
Combined Total = Employee Share + Employer Share
Take a hypothetical employee with $90,000 in annual wages. Combined Social Security and Medicare on the employee side is 7.65%, or $6,885. The employer matches it with another $6,885, for a combined total of $13,770. When wages are below the Social Security wage base, the whole amount is subject to both parts, which is why the two shares are equal in these examples. If wages exceed the wage base, the Social Security portion stops at the cap while Medicare continues on all wages, so the effective rate falls for high earners.
Here, payroll tax means the two FICA components. The calculator does not cover income tax withholding, which depends on the employee's W-4 and is not a cost to the employer. It also leaves out other employer obligations that commonly appear in a real payroll budget:
For a quick estimate of what a new hire really costs, take the annual wage and add the employer share shown here, then add benefits and insurance from your own quotes. As a rough sense of scale, the employer share is a modest percentage on top of pay, but it is only part of the true labor cost. If you hire several people, sum each person's wages before running the calculation, or run it per employee if some wages exceed the wage base.
The standard split applies to employees on a W-2. Independent contractors are not subject to employer matching, since they pay self-employment tax themselves, and misclassifying a worker can carry penalties. Confirm current rates and wage base on IRS.gov or SSA.gov, and consider a payroll provider or accountant for filing requirements and deposit schedules.
To validate the result, look at a pay stub: the Social Security and Medicare lines for one pay period, added together, should equal the employee share here divided by the number of pay periods, provided no wage cap or pre-tax benefit exclusions apply. Certain pre-tax benefits are exempt from FICA, so wages subject to it can be lower than gross pay.
Yes -- Social Security and Medicare are structured so employers match the employee's contribution dollar-for-dollar, which is why the combined cost to fund these programs is double what any single paycheck shows withheld.
Related but different -- the Self-Employment Tax Calculator applies a specific 92.35% taxable-income adjustment for self-employed filers paying both halves themselves, while this tool models the standard W-2 employer/employee split directly on full wages.
Yes. The employer share is an added cost that is not deducted from the employee's pay.
Yes, it applies only up to an annual wage base that changes over time. Check SSA.gov for the current figure. Medicare has no such cap.
No. Payroll tax funds Social Security and Medicare, while income tax withholding is a prepayment of the employee's federal income tax.
Generally yes, if they are employees, because FICA applies to wages regardless of hours.
Reference: Internal Revenue Service