{
  "slug": "payroll-tax",
  "title": "Employer Payroll Tax Calculator",
  "heading": "Employer Payroll Tax Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/payroll-tax",
  "summary": "The true cost of an employee beyond their salary.",
  "description": "An employee costs far more than their salary: the employer half of FICA, unemployment insurance, workers' comp, and benefits typically add 20–30% on top. This is the number to use when budgeting a hire.",
  "formula": "Total cost = Salary + employer FICA (7.65%) + FUTA/SUTA + workers' comp + benefits.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=payroll-tax",
  "inputs": [
    {
      "id": "salary",
      "label": "Annual salary",
      "kind": "number",
      "hint": null,
      "default": 85000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "sutaRate",
      "label": "State unemployment rate",
      "kind": "number",
      "hint": null,
      "default": 2.7,
      "unit": "%",
      "min": 0,
      "max": 12
    },
    {
      "id": "sutaBase",
      "label": "SUTA wage base",
      "kind": "number",
      "hint": null,
      "default": 9000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "compRate",
      "label": "Workers' comp rate",
      "kind": "number",
      "hint": null,
      "default": 0.8,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "benefits",
      "label": "Benefits cost",
      "kind": "number",
      "hint": null,
      "default": 9600,
      "unit": "$/yr",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "total",
      "label": "True annual cost",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "loadPct",
      "label": "Load above salary",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "employerFica",
      "label": "Employer FICA",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "unemployment",
      "label": "FUTA + SUTA",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "comp",
      "label": "Workers' compensation",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthly",
      "label": "Monthly cost",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual salary: 85000 $",
      "State unemployment rate: 2.7 %",
      "SUTA wage base: 9000 $",
      "Workers' comp rate: 0.8 %",
      "Benefits cost: 9600 $/yr"
    ],
    "outputs": [
      "True annual cost: $102,067.50",
      "Load above salary: 20.1%",
      "Employer FICA: $6,502.50",
      "FUTA + SUTA: $285.00",
      "Workers' compensation: $680.00",
      "Monthly cost: $8,505.63"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual salary ($).",
      "Enter state unemployment rate (%).",
      "Enter suta wage base ($).",
      "Enter workers' comp rate (%).",
      "Enter benefits cost ($/yr).",
      "Read your true annual cost on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "salary": 51000,
        "sutaRate": 1.62,
        "sutaBase": 5500,
        "compRate": 0.48,
        "benefits": 6000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "salary": 85000,
        "sutaRate": 2.7,
        "sutaBase": 9000,
        "compRate": 0.8,
        "benefits": 9500
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "salary": 136000,
        "sutaRate": 4.32,
        "sutaBase": 14500,
        "compRate": 1.2800000000000002,
        "benefits": 15500
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the employer payroll tax calculator work?",
      "a": "An employee costs far more than their salary: the employer half of FICA, unemployment insurance, workers' comp, and benefits typically add 20–30% on top. This is the number to use when budgeting a hire. The underlying maths is: Total cost = Salary + employer FICA (7.65%) + FUTA/SUTA + workers' comp + benefits."
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: annual salary, state unemployment rate, suta wage base, workers' comp rate, and benefits cost. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the true annual cost result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/take-home-pay",
    "https://www.revenuelab.fyi/toolbox/fica"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Employer Payroll Tax Calculator (https://www.revenuelab.fyi/toolbox/payroll-tax)"
}