Employer Cost Calculator (2026)

For 2026 the employer pays 6.2% Social Security up to the $184,500 wage base, 1.45% Medicare with no cap, FUTA at an effective 0.6% on the first $7,000, plus state unemployment (SUTA) and workers’ compensation. Statutory costs alone typically add 8–12% on top of salary; benefits push it higher.

State unemployment is not one number. The taxable wage base is set by each state and ranges from $7,000 to well over $70,000, and your rate depends on your company’s own experience rating. Your annual state rate notice has both figures. We ask for them rather than guessing, so the result is your real cost and not an average.

No. The additional Medicare tax above $200,000 (single) or $250,000 (joint) is withheld from the employee only. The employer’s Medicare share stays at 1.45% on all wages.

The gross FUTA rate is 6.0% on the first $7,000 of wages, but employers who pay state unemployment on time receive a 5.4% credit, leaving an effective 0.6% — about $42 per employee per year. A handful of credit-reduction states pay more; that is not modelled here.