Employer Payroll Taxes in 2026: What You Owe per Employee
On top of each paycheck, a US employer owes its own share of payroll taxes. For most small businesses, the federal portion is a little under 8% of wages. State unemployment and workers' comp come on top.
The four employer-side taxes
| Tax | Employer rate (2026) | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 per employee |
| Medicare | 1.45% | All wages (no cap) |
| FUTA (federal unemployment) | 6.0%, usually 0.6% after state credit | First $7,000 per employee |
| SUTA (state unemployment) | Set by your state | Up to your state's wage base |
Sources: IRS on Social Security and Medicare rates and the 2026 wage base; IRS Topic 759 (FUTA).
You also withhold the employee's matching 6.2% and 1.45%, plus income tax, from their pay. Those come out of the employee's wages, so they aren't an extra cost to you, but you're responsible for depositing them. Holding back withheld taxes is treated seriously: the IRS can hold owners personally liable.
Worked example: $60,000 salary
| Social Security: 6.2% × $60,000 | $3,720.00 |
| Medicare: 1.45% × $60,000 | $870.00 |
| FUTA: 0.6% × $7,000 | $42.00 |
| Federal employer total | $4,632.00 (7.72%) |
State unemployment is the wildcard. Wage bases range from a few thousand dollars to well over $50,000 depending on the state, and new-employer rates vary too. See the state-by-state guides for 2026 new-employer SUTA rates and wage bases we checked, or plug your state's numbers into the calculator.
What about FUTA credit reduction states?
If your state borrowed from the federal government to pay unemployment benefits and hasn't repaid, employers there lose part of the 5.4% FUTA credit and pay more than 0.6%. The Department of Labor publishes the list each November. If your state is on it, add the extra percentage to your FUTA figure.
What's not an employer tax
- Additional Medicare Tax (0.9%): you withhold it from employee wages over $200,000, but there's no employer match.
- Federal income tax withholding: the employee's money, which you send in.
FAQ
What percentage does an employer pay in payroll taxes?
At the federal level, 7.65% for Social Security and Medicare (Social Security only on wages up to $184,500 in 2026), plus FUTA, which is usually $42 per employee per year. State unemployment tax is extra and varies by state.
What is the 2026 Social Security wage base?
$184,500. Wages above that aren't subject to the 6.2% Social Security tax for either the employer or the employee.