Calculate employee payroll taxes, employer payroll taxes, net pay, and total payroll cost. Free calculator for small business owners, HR teams, and finance professionals.
Calculate employee payroll taxes, employer payroll taxes, net pay, and total payroll cost. Free calculator for small business owners, HR teams, and finance professionals.
Generated: 1/13/2026, 3:20:19 AM | AskSMB.io
Employee gross wages before taxes
How often the employee is paid
Income tax + employee-side payroll taxes
Employer-paid payroll taxes (e.g., Social Security, insurance)
Employee Payroll Taxes
$0
Total taxes withheld from employee pay
Employer Payroll Taxes
$0
Total payroll taxes paid by employer
Net Pay to Employee
$0
Take-home pay after employee taxes
Total Payroll Cost
$0
True cost of payroll to the employer
Payroll taxes are mandatory taxes on wages and salaries paid by both employers and employees. They fund social insurance programs like Social Security, Medicare, unemployment insurance, and other government services. Understanding payroll taxes is crucial for accurate budgeting and compliance.
Employee taxes are withheld from paychecks and include federal/state income tax, Social Security (6.2%), and Medicare (1.45%). Employer taxes are paid on top of wages and include matching Social Security and Medicare contributions, plus federal and state unemployment taxes. These typically add 7-10% to total labor costs.
For small businesses, payroll taxes significantly impact cash flow and profitability. The true cost of an employee is much higher than their gross salary. Accurate payroll tax calculation helps businesses budget correctly, avoid penalties, maintain compliance, and make informed hiring decisions.