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.
Before taxes
Gross Annual Pay
$75,000.00
Estimated Net Pay
$60,921.50
Social Security (6.2%)
$4,650.00
Medicare (1.45%)
$1,087.50
Federal Income Tax
$8,341.00
Total Employee Taxes
$14,078.50
Social Security (6.2%)
$4,650.00
Medicare (1.45%)
$1,087.50
Total Employer Taxes
$5,737.50
Total Cost to Employer
$80,737.50
Combined FICA tax burden
$19,816.00
Gross Pay
$75,000.00
Total Taxes Paid
$19,816.00
26.4% combined rate
Employee Net Pay
$60,921.50
81.2% of gross
Federal payroll taxes consist of two main components: FICA taxes (Social Security and Medicare) and federal income tax withholding. FICA taxes are split equally between employer and employee — each pays 6.2% for Social Security (up to the wage base) and 1.45% for Medicare. High earners may also owe an additional 0.9% Medicare tax on wages above certain thresholds. Federal income tax is withheld based on your filing status and income level using progressive tax brackets. Understanding these taxes helps both employers budget for total compensation costs and employees understand their take-home pay.
Payroll taxes are taxes imposed on employers and employees based on wages and salaries. They fund Social Security and Medicare programs. Both employers and employees each pay 6.2% for Social Security and 1.45% for Medicare, totaling 15.3% combined (known as FICA).
The Social Security wage base is the maximum amount of earnings subject to Social Security tax. For 2024, the cap is $168,600. Earnings above this amount are not subject to Social Security tax but are still subject to Medicare tax.
The Additional Medicare Tax is an extra 0.9% tax on wages exceeding $200,000 for single filers or $250,000 for married filing jointly. Only the employee pays this additional tax — the employer does not match it.
This calculator estimates federal payroll taxes only, including Social Security, Medicare, and federal income tax withholding. State income taxes, state disability insurance, and local taxes vary by location and are not included.
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