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2025 Tax Year

US Employer Cost Calculator

Calculate the true cost of employing someone in the US. See how employer FICA taxes, FUTA, state unemployment, and 401(k) matching add to salary costs.

Employee Salary

Enter the gross salary for 2025

$
4%
0%10%

Total Employer Cost

What it actually costs to employ someone

$84,050
per year
+12.1% overhead
Gross Salary$75,000
Social Security (6.2%)+$4,650
Medicare (1.45%)+$1,088
FUTA (Federal Unemployment)+$42
SUTA (State Unemployment)+$270
401(k) Match (4%)+$3,000
Total Cost$84,050
$7,004
per month
$323
per working day

Employer Payroll Tax Rates 2025

Social Security
6.2%
Up to $176,100
Medicare
1.45%
All wages (no cap)
FUTA (Effective)
0.6%
First $7,000 only
Total FICA
7.65%
Employer matches employee

Employer Cost Examples

Gross SalaryEmployer FICAFUTA/SUTATotal Cost
$30,000$2,295$312$32,607
$40,000$3,060$312$43,372
$50,000$3,825$312$54,137
$60,000$4,590$312$64,902
$75,000$5,738$312$81,050
$100,000$7,650$312$107,962
$150,000$11,475$312$161,787

Based on employer payroll taxes only. 401(k) matching and benefits would add to total cost.

Understanding Employer Costs

Employer FICA Taxes

Employers must match the FICA taxes paid by employees. This includes 6.2% Social Security tax on wages up to $176,100 and 1.45% Medicare tax on all wages. Combined, employers pay 7.65% on most employee wages.

FUTA Tax

The Federal Unemployment Tax Act (FUTA) tax is 6% on the first $7,000 of each employee's wages. However, employers who pay state unemployment taxes on time receive a credit of up to 5.4%, reducing the effective FUTA rate to just 0.6% (maximum $42 per employee per year).

State Unemployment Tax (SUTA)

State unemployment tax rates vary by state and employer experience rating. New employers typically pay a standard rate (often 2-3%), while established employers may pay more or less based on their layoff history. Rates and wage bases differ significantly between states.

401(k) Employer Match

While not mandatory, many employers offer 401(k) matching as a benefit. Common matches include 50% of employee contributions up to 6% of salary, or dollar-for-dollar up to 3-4%. This is an additional cost beyond payroll taxes.