Precision Utility
US Payroll Tax
Calculator
Tax Year
2025
SS Wage Base
$176,100
Calculate your 2025 US payroll taxes including FICA (Social Security and Medicare), federal income tax withholding, and FUTA. See a complete breakdown of employee deductions, employer costs, and net pay per paycheck and annually.
Payroll Details
Annual Net Pay (Employee)
$0
Gross Pay
$0
Federal Tax
$0
Social Security
$0
Medicare
$0
Total Deductions
$0
Employer Cost
$0
How the payroll tax calculator works
Enter your annual salary, select your pay frequency, and choose your filing status. The calculator computes all payroll taxes that apply to both you (the employee) and your employer for the 2025 tax year.
Employee deductions include Social Security tax (6.2% up to the $176,100 wage base), Medicare tax (1.45% with no cap), the Additional Medicare Tax (0.9% on earnings above $200,000), and federal income tax withholding based on 2025 brackets with the standard deduction applied.
Employer costs include the matching Social Security and Medicare contributions, plus FUTA (Federal Unemployment Tax) at an effective rate of 0.6% on the first $7,000 of wages. The results show both per-paycheck and annual amounts so you can see exactly where your money goes.
Understanding FICA taxes in 2025
FICA (Federal Insurance Contributions Act) taxes fund two programs: Social Security and Medicare. Both employees and employers share the cost equally.
| Tax | Employee Rate | Employer Rate | Wage Limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $176,100 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% | N/A | Over $200,000 |
| FUTA | N/A | 0.6% (effective) | $7,000 |
The combined FICA rate is 7.65% for both employees and employers. Self-employed individuals pay both halves (15.3%) through the self-employment tax, though they can deduct the employer-equivalent portion. Source: IRS.gov.
Employer vs. employee payroll taxes
Payroll taxes are split between you and your employer. As an employee, you see Social Security, Medicare, and federal income tax withheld from each paycheck. Your employer pays a matching amount of Social Security and Medicare, plus FUTA, which you never see on your pay stub.
The Additional Medicare Tax of 0.9% is the one exception to the matching rule. Only employees pay it, and it applies to wages exceeding $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately).
Your total employer cost is your salary plus all employer-side taxes. This is often called the "fully loaded" cost of an employee and is typically 7% to 8% higher than the salary alone.
FUTA: Federal Unemployment Tax
FUTA is a federal tax paid exclusively by employers to fund unemployment insurance. The gross FUTA rate is 6.0% on the first $7,000 of each employee's annual wages.
However, employers who pay their state unemployment taxes (SUTA) on time receive a credit of up to 5.4%, bringing the effective FUTA rate down to just 0.6%. This means the maximum FUTA tax per employee is $42 per year ($7,000 x 0.6%).
FUTA is not deducted from employee paychecks. It is an additional cost borne entirely by the employer.
Frequently asked questions
What is FICA and what does it stand for?
FICA stands for the Federal Insurance Contributions Act. It covers Social Security (6.2% each for employee and employer, up to the wage base) and Medicare (1.45% each, no cap). Together, FICA totals 7.65% for each side, or 15.3% combined.
What is the Social Security wage base for 2025?
The 2025 Social Security wage base is $176,100. Only earnings up to this amount are subject to the 6.2% Social Security tax. Income above this threshold is exempt from Social Security tax, though Medicare tax continues to apply with no cap.
What is the Additional Medicare Tax?
It is an extra 0.9% Medicare tax on wages exceeding $200,000 (single) or $250,000 (married filing jointly). Only employees pay it. Combined with the regular 1.45%, high earners pay 2.35% in total Medicare taxes on income above the threshold.
What is FUTA and who pays it?
FUTA (Federal Unemployment Tax Act) is paid by employers only. The rate is 6.0% on the first $7,000 of wages, but with the standard 5.4% state credit, the effective rate is 0.6%, capping the tax at $42 per employee per year.
What is the difference between employer and employee payroll taxes?
Employees pay Social Security, Medicare, Additional Medicare Tax (on high earnings), and federal income tax withholding. Employers match Social Security and Medicare but do not pay Additional Medicare Tax. Employers also pay FUTA, which employees do not.
How do W-4 adjustments affect my payroll taxes?
Your W-4 only affects federal income tax withholding, not FICA taxes. Changing your W-4 allowances or requesting extra withholding adjusts how much federal tax is taken each paycheck. Social Security and Medicare are always calculated at their fixed rates.