Employee Cost Calculator

See what an employee really costs: wages plus 2026 federal payroll taxes, state unemployment, workers' comp and benefits.

How it's calculated

• Federal rates for 2026: Social Security 6.2% on wages up to $184,500 and Medicare 1.45% on all wages, paid by the employer (employees pay a matching share). Source: IRS Publication 15 (2026).
• FUTA: 6.0% on the first $7,000 per employee, reduced to 0.6% with the full 5.4% state credit. Employers in FUTA credit-reduction states pay more. Source: IRS Topic 759.
• State unemployment rates, wage bases and workers' compensation rates vary by state, industry and claims history, so you enter them.
• Does not include the Additional Medicare Tax (employee-only withholding over $200,000), state disability or paid-leave programs, or local payroll taxes.

Sources

• IRS Publication 15 (Circular E), Employer's Tax Guide — Internal Revenue Service, verified 2026-11-03
• IRS Topic 759 — Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return — Internal Revenue Service, verified 2026-11-03
• Federal Register — 2026 Social Security contribution and benefit base ($184,500) — Social Security Administration, verified 2026-11-03