Payroll Calculator
Calculate employee net pay and total employer payroll costs including taxes.
Tip: Employers should budget at least 10-15% above the gross salary to cover mandatory payroll taxes and insurance.
Net Pay
Per annual
Understanding Payroll Costs
Payroll isn't just about the salary an employee receives. It involves significant costs and responsibilities for both the individual and the business. Our Payroll Calculator helps you visualize these two distinct perspectives.
Employee Perspective
Focuses on your **Take-Home Pay**. It subtracts federal and state income taxes, along with the employee portion of FICA (Social Security and Medicare).
Employer Perspective
Calculates the **Total Cost of Employment**. In addition to the gross salary, employers must pay their share of FICA, as well as Federal (FUTA) and State (SUTA) unemployment taxes.
Key Tax Terms
- FICA: Federal Insurance Contributions Act, covering Social Security (6.2%) and Medicare (1.45%). Both employee and employer pay these amounts.
- FUTA: Federal Unemployment Tax Act. Paid only by the employer, usually 0.6% on the first $7,000 of wages.
- SUTA: State Unemployment Tax Act. Employer-paid tax that varies significantly by state and employer experience rating.