Calculate employee take-home pay after federal and state taxes, Social Security, Medicare, and deductions. See the full breakdown from gross pay to net pay.
Gross annual pay
Effective federal rate
State income tax rate
401k or similar (pre-tax)
Employee premium per pay period
Gross Pay
$2,500.00
Net Pay
$1,378.25
True Cost to Employer
$69,973/year
Annual Gross
$65,000.00
$5,416.67/month
Annual Taxes
$20,065.50
30.9% of gross
Annual Net Pay
$35,834.50
$2,986.21/month
For every $1 in salary, the employer pays $1.08 total (7.6% overhead from employer-side taxes)
This calculator estimates net pay by deducting federal income tax (using a simplified effective rate), state income tax, Social Security (6.2%), Medicare (1.45%), and any pre-tax deductions like retirement contributions and health insurance premiums. The result is an estimate — actual withholding depends on the employee's W-4, filing status, and specific state rules.
Employers pay the matching 6.2% Social Security tax (up to the wage base of $168,600 in 2024), 1.45% Medicare tax, Federal Unemployment Tax (FUTA) of 0.6% on the first $7,000 per employee, and State Unemployment Tax (SUTA) which varies by state and experience rating.
Federal income tax uses progressive brackets. This calculator uses a simplified effective tax rate estimate. For precise calculations, you would need the employee's W-4 filing status, allowances, and other withholdings. Consult IRS Publication 15 or use a professional payroll service.
The Social Security tax (6.2% from both employer and employee) only applies to earnings up to an annual limit — $168,600 in 2024. Earnings above this amount are not subject to Social Security tax, though Medicare tax (1.45%) has no cap.
For most small businesses with employees, yes. Payroll services handle tax calculations, withholdings, filings, and compliance. The cost ($20-80/month plus per-employee fees) is usually far less than the risk of payroll tax errors, which can result in IRS penalties.
Paycheck Calculator
Estimate your take-home pay after federal and state taxes, Social Security, Medicare, and retirement contributions. See exactly where your paycheck goes.
Payroll Tax Calculator
Estimate federal payroll taxes for employees including Social Security, Medicare, and federal income tax withholding. See both employee and employer tax obligations side by side.