How is the employee paid?

Sets the employee’s state income tax. Local income taxes aren’t included.

Example value. Each state assigns its own rate; enter yours.

Example value. Each state sets the wages per employee that are taxed.

Employee pre-tax deductions (401(k), health)

Employee share paid pre-tax through a Section 125 cafeteria plan.

Employer benefits and other costs

The employer’s share of health insurance premiums.

The match or other contribution you expect to pay, as a percent of gross pay.

Workers’ compensation premiums, paid time off, equipment, anything else you want counted.

Year-to-date wages and FUTA credit reduction

Before this paycheck. Sets how much of the FUTA, state unemployment and Social Security wage bases is left.

Only if the employee works in a credit reduction state. The Department of Labor publishes it; leave at 0 otherwise.

Total cost of this employee per year

$70,258

$65,000 gross pay + $5,258 employer payroll taxes · paid every two weeks (26 paychecks) · Single · no state income tax

Total cost as % of gross pay

108.1%

Employer taxes per year

$5,258

Average cost per paycheck

$2,702.21

Employee net pay per paycheck

$2,092.60

What each paycheck costs the employer

1 — Employee net pay: $2.1K2 — Employee net pay: $2.1K3 — Employee net pay: $2.1K4 — Employee net pay: $2.1K5 — Employee net pay: $2.1K6 — Employee net pay: $2.1K7 — Employee net pay: $2.1K8 — Employee net pay: $2.1K9 — Employee net pay: $2.1K10 — Employee net pay: $2.1K11 — Employee net pay: $2.1K12 — Employee net pay: $2.1K13 — Employee net pay: $2.1K14 — Employee net pay: $2.1K15 — Employee net pay: $2.1K16 — Employee net pay: $2.1K17 — Employee net pay: $2.1K18 — Employee net pay: $2.1K19 — Employee net pay: $2.1K20 — Employee net pay: $2.1K21 — Employee net pay: $2.1K22 — Employee net pay: $2.1K23 — Employee net pay: $2.1K24 — Employee net pay: $2.1K25 — Employee net pay: $2.1K26 — Employee net pay: $2.1K1 — Employee taxes and deductions withheld: $4072 — Employee taxes and deductions withheld: $4073 — Employee taxes and deductions withheld: $4074 — Employee taxes and deductions withheld: $4075 — Employee taxes and deductions withheld: $4076 — Employee taxes and deductions withheld: $4077 — Employee taxes and deductions withheld: $4078 — Employee taxes and deductions withheld: $4079 — Employee taxes and deductions withheld: $40710 — Employee taxes and deductions withheld: $40711 — Employee taxes and deductions withheld: $40712 — Employee taxes and deductions withheld: $40713 — Employee taxes and deductions withheld: $40714 — Employee taxes and deductions withheld: $40715 — Employee taxes and deductions withheld: $40716 — Employee taxes and deductions withheld: $40717 — Employee taxes and deductions withheld: $40718 — Employee taxes and deductions withheld: $40719 — Employee taxes and deductions withheld: $40720 — Employee taxes and deductions withheld: $40721 — Employee taxes and deductions withheld: $40722 — Employee taxes and deductions withheld: $40723 — Employee taxes and deductions withheld: $40724 — Employee taxes and deductions withheld: $40725 — Employee taxes and deductions withheld: $40726 — Employee taxes and deductions withheld: $4071 — Employer payroll taxes: $2742 — Employer payroll taxes: $2743 — Employer payroll taxes: $2714 — Employer payroll taxes: $2325 — Employer payroll taxes: $1916 — Employer payroll taxes: $1917 — Employer payroll taxes: $1918 — Employer payroll taxes: $1919 — Employer payroll taxes: $19110 — Employer payroll taxes: $19111 — Employer payroll taxes: $19112 — Employer payroll taxes: $19113 — Employer payroll taxes: $19114 — Employer payroll taxes: $19115 — Employer payroll taxes: $19116 — Employer payroll taxes: $19117 — Employer payroll taxes: $19118 — Employer payroll taxes: $19119 — Employer payroll taxes: $19120 — Employer payroll taxes: $19121 — Employer payroll taxes: $19122 — Employer payroll taxes: $19123 — Employer payroll taxes: $19124 — Employer payroll taxes: $19125 — Employer payroll taxes: $19126 — Employer payroll taxes: $191$0$750$1.5K$2.3K$3K15913172126
  • Employee net pay $54,408
  • Employee taxes and deductions withheld $10,592
  • Employer payroll taxes $5,258

Employee: gross pay to net pay

This paycheckAverageFull year
Gross pay$2,500.00$2,500.00$65,000
Federal income tax (est.)−$216.15−$216.15−$5,620
Social Security−$155.00−$155.00−$4,030
Medicare−$36.25−$36.25−$943
Net pay$2,092.60$2,092.60$54,408

Employer: what this employee costs

This paycheckAverageFull year
Gross wages$2,500.00$2,500.00$65,000
Social Security (employer)$155.00$155.00$4,030
Medicare (employer)$36.25$36.25$943
Federal unemployment (FUTA)$15.00$1.62$42
State unemployment (SUTA)$67.50$9.35$243
Total employer cost$2,773.75$2,702.21$70,258

Employee withholding is an estimate: we figure the 2026 federal and state income tax for the year and spread it evenly over 26 paychecks, which is what a correctly completed Form W-4 is designed to withhold. Your payroll software uses the IRS Publication 15-T tables, so real checks can differ by a few dollars. Dependents, extra withholding and local taxes are not included.

“This paycheck” is the first paycheck of the year, when FUTA and state unemployment tax are at their highest because those wage bases have not been used up yet. “Average” spreads the full-year total over every paycheck.

No state selected, so state income tax is not included in the employee’s net pay. Choose the employee’s state to add it.

Employer taxes are front-loaded: FUTA ends after paycheck 3 (first $7,000 of wages); state unemployment ends after paycheck 4 (first $9,000). Later paychecks cost less, which the chart shows.

FUTA assumes the full 5.4% credit: state unemployment tax paid in full, on time and on the same wages. State unemployment uses the rate and wage base you entered, which are examples until you replace them with your state’s figures, and assumes the same wages as FUTA.

How the employer taxes were figured
Wages subject to Social Security, Medicare and FUTA, per paycheck
$2,500.00
Social Security: 6.2% up to $184,500 of wages
$4,030
Medicare: 1.45% on all wages
$943
FUTA: 0.6% on the first $7,000 of wages
$42
State unemployment: 2.7% on the first $9,000 of wages
$243
Employer payroll taxes for the year
$5,258

Payroll Calculator by SureCalcs