What payroll taxes does an employer pay in 2025?

Employers pay Social Security (6.2% on wages up to $176,100), Medicare (1.45% on all wages), FUTA at an effective 0.6% rate on the first $7,000 of wages, and SUTA (state unemployment tax, rate varies by state and employer history). The employer share of FICA alone adds 7.65% to the cost of every employee.

What is the Social Security wage base for 2025?

The Social Security taxable wage base for 2025 is $176,100. Both the employee and employer pay 6.2% on wages up to this limit. Wages above $176,100 are not subject to Social Security tax, though Medicare tax (1.45%) still applies to all wages with no cap.

How is federal income tax withholding calculated on a paycheck?

Federal withholding uses the IRS Percentage Method (Publication 15-T 2025). Your gross pay is annualized, pre-tax deductions like 401(k) and HSA are subtracted, the standard deduction for your filing status is applied ($15,000 single, $30,000 married, $22,500 head of household), and the remaining taxable income is run through the 2025 federal tax brackets. The resulting annual tax is divided by your pay frequency.

What is the Additional Medicare Tax and who pays it?

The Additional Medicare Tax is an extra 0.9% assessed on wages that exceed $200,000 for single filers or $250,000 for married filing jointly. Only the employee pays this tax — there is no employer match on the additional 0.9%. Employers are required to withhold it once cumulative wages to a single employee exceed $200,000 in a calendar year.

Payroll Tax Calculator 2025 — FreeAdminTools.com

Pay Information

Gross Pay

Pay Amount ($)

Pay Frequency

Tax Profile

Filing Status

State

YTD Earnings (before this check)

Used to track Social Security wage base ($176,100) and FUTA cap ($7,000).

Pre-Tax Deductions (per period)

401(k) / 403(b) Contribution

% = $

Health Insurance ($)

HSA Contribution ($)

Employer Settings

SUTA Rate (%)

State unemployment tax rate. New employers typically pay 1–4%. Check your state agency for your rate.

Enter a pay amount to see your paycheck breakdown.

Enter a pay amount to see total employer cost.

2025 FICA Tax Rates at a Glance

Tax	Employee	Employer	Wage Cap
Social Security	6.2%	6.2%	$176,100
Medicare	1.45%	1.45%	None
Addl. Medicare	0.9%	—	Over $200K (S) / $250K (MFJ)
FUTA	—	0.6%*	$7,000

*FUTA effective rate of 0.6% assumes full 5.4% credit for SUTA payments.

2025 Federal Income Tax Brackets

Rate	Single (taxable income)	Married Filing Jointly
10%	$0 – $11,925	$0 – $23,850
12%	$11,926 – $48,475	$23,851 – $96,950
22%	$48,476 – $103,350	$96,951 – $206,700
24%	$103,351 – $197,300	$206,701 – $394,600
32%	$197,301 – $250,525	$394,601 – $501,050
35%	$250,526 – $626,350	$501,051 – $751,600
37%	Over $626,350	Over $751,600

What Are Pre-Tax Deductions?

Pre-tax deductions reduce your federal (and often state) taxable wages before withholding is calculated. Common examples include:

401(k) / 403(b): Traditional retirement contributions. Exempt from federal income tax withholding, but still subject to Social Security and Medicare.
Health insurance premiums: Employer-sponsored plans paid through payroll are typically pre-tax under a Section 125 cafeteria plan, reducing both income tax and FICA.
HSA contributions: Health Savings Account contributions through payroll are excluded from federal income tax, SS, and Medicare.

Understanding the Social Security Wage Base

Social Security tax (6.2% each for employee and employer) only applies to wages up to the annual wage base, which is $176,100 in 2025. Once an employee's cumulative wages exceed this amount, no further Social Security tax is owed for the rest of the year.

Use the YTD Earnings field to track where you are in the year. If you're already over the cap, this calculator will correctly show $0 for Social Security.

Medicare tax (1.45%) has no wage base cap — it applies to every dollar earned.

Payroll Tax Calculator — 2025

2025 FICA Tax Rates at a Glance

2025 Federal Income Tax Brackets

What Are Pre-Tax Deductions?

Understanding the Social Security Wage Base