1. What is Employer Payroll Tax?

Employer payroll taxes are taxes that employers are required to pay based on their employees' wages. These typically include Social Security and Medicare taxes (FICA), federal unemployment tax (FUTA), and state unemployment tax (SUTA).

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Wages \) — Total wages paid to employees
• \( Tax\ Rate \) — The applicable payroll tax rate percentage

Explanation: The calculator multiplies the total wages by the tax rate (converted from percentage to decimal) to determine the employer's tax liability.

3. Importance of Payroll Tax Calculation

Details: Accurate payroll tax calculation is crucial for compliance with tax laws, proper budgeting, and avoiding penalties for underpayment.

4. Using the Calculator

Tips: Enter total wages in dollars and the applicable tax rate as a percentage. For example, for $10,000 wages at 7.65% FICA rate, enter 10000 and 7.65.

5. Frequently Asked Questions (FAQ)

Q1: What are typical employer payroll tax rates?
A: FICA is 7.65% (6.2% Social Security + 1.45% Medicare), FUTA is 6% on first $7,000, and SUTA varies by state.

Q2: Are employer payroll taxes deductible?
A: Yes, employer-paid payroll taxes are generally deductible as business expenses.

Q3: When are payroll taxes due?
A: Typically monthly or semi-weekly depending on deposit schedule. Check with IRS and state requirements.

Q4: What happens if I pay late?
A: Late payments may incur penalties and interest charges from tax authorities.

Q5: Does this include employee withholding taxes?
A: No, this calculator only computes the employer's portion of payroll taxes.