Use this tool to estimate an employee's take-home pay after withholdings and understand the total tax burden for your business.
Employee Net Pay:
$0
Federal Withholding Estimate:
Social Security (Employee):
Medicare (Employee):
Employer's Total Payroll Cost:
Employer Tax Burden (FICA/FUTA/SUTA):
Payroll tax calculation involves subtracting mandatory withholdings from gross pay while adding employer-side obligations.
Formula: Net Pay = Gross Pay - (Fed Tax + State Tax + FICA)
Net Pay = Gross Pay - (Fed Tax + State Tax + FICA)
If an employee earns a Gross Pay of $2,000 monthly with a 5% State Tax Rate:
FICA stands for the Federal Insurance Contributions Act. It is a U.S. federal payroll tax that funds Social Security and Medicare.
FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) are taxes paid by employers to fund unemployment benefits.
No, federal income tax depends on the employee's tax bracket, filing status, and allowances specified on their W-4 form.
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