Employer guide
How to calculate employer payroll tax in 2026
For 2026, an employer pays 6.2% in Social Security tax on the first $184,500 of each employee’s covered wages. The employer also pays 1.45% in Medicare tax on all Medicare wages. Add the two amounts to get the employer’s FICA tax.
Calculate my payroll taxesCompare two employees
Both examples assume all the pay is covered wages before applying the Social Security cap. Once Social Security wages reach that cap for the year, the employer stops paying Social Security tax on more wages for that employee. Medicare tax still applies to Medicare wages.
| Yearly pay in the example | Employer Social Security | Employer Medicare | Employer FICA |
|---|---|---|---|
| $60,000 | $60,000 × 6.2% = $3,720 | $60,000 × 1.45% = $870 | $4,590 |
| $205,000 | $184,500 × 6.2% = $11,439 | $205,000 × 1.45% = $2,972.50 | $14,411.50 |
Use your payroll records
- Find wages subject to each tax. A payroll report may show different amounts for Social Security and Medicare.
- Do the math for each employee and add the results. The wage cap applies to each employee.
- Keep federal and state unemployment taxes on separate lines if you want your full employer tax cost.
Keep employee withholding separate
Your business withholds taxes from employee pay and pays its own share. The 0.9% Additional Medicare Tax is employee withholding. There is no employer share of that extra tax.
Sources
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