Worked example: one $60,000 employee
Social Security takes $3,720, Medicare $870, FUTA $42, and SUTA about $189 at a 2.7% new-employer rate — $4,821 per year, or $402 per month on top of the salary. Budget the full $64,821 plus benefits when planning the hire, not the $60,000 on the offer letter.
- • High SUTA wage-base states (WA, ID, NV) can add $1,000+ per employee versus the $7K-floor states.
- • SUTA rates are experience-rated — layoffs that trigger claims raise your rate for years.
- • The 0.9% Additional Medicare Tax is employee-only; employers never match it.
FAQ
How much are employer payroll taxes per employee?
Typically 8–10% of wages for salaries under the Social Security cap: 6.2% Social Security, 1.45% Medicare, ~$42 FUTA, and SUTA that ranges from near zero to several hundred dollars depending on state and claims history.
What is the FUTA rate really?
The statute says 6.0% on the first $7,000, but employers in states current on their federal loans get a 5.4% credit, making the effective rate 0.6% — $42 per employee per year. Credit-reduction states pay more.
Do employer taxes apply to bonuses?
Yes. Social Security (up to the wage cap), Medicare, and unemployment taxes apply to bonuses exactly like regular wages.
Are contractors subject to employer payroll tax?
No — genuine 1099 contractors pay their own self-employment tax. But if the worker is really an employee, misclassification exposes you to the back employer taxes plus penalties.
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