Employer Payroll Tax Cost
On top of wages, employers owe 7.65% in FICA (6.2% Social Security + 1.45% Medicare) plus federal and state unemployment and workers’ compensation. Together, legally required benefits cost about $3.38 per hour worked — roughly 7.3% of total compensation (BLS).
Employer payroll taxes add about 7.65% for FICA plus unemployment and workers’ comp. In total, legally required benefits average about $3.38 per hour worked (BLS).
- FICA (Social Security + Medicare)7.65%
- Social Security6.2%
- Medicare1.45%
- Legally required, per hour$3.38
Source: U.S. Bureau of Labor Statistics — Employer Costs for Employee Compensation, March 2026
Payroll taxes vs. legally required benefits
Employers match FICA: 6.2% Social Security (up to the annual wage base) and 1.45% Medicare, for 7.65% of wages. They also pay federal (FUTA) and state unemployment taxes and workers’ compensation premiums. The BLS groups all of these as legally required benefits, which average $3.38 per hour worked — the FICA match is the largest part.
Employer payroll tax components
| Tax | Rate / basis |
|---|---|
| Social Security | 6.2% of wages (to wage base) |
| Medicare | 1.45% of all wages |
| FICA subtotal | 7.65% |
| Federal unemployment (FUTA) | 0.6%–6.0% on first $7,000 |
| State unemployment & workers’ comp | Varies by state and risk |
FICA rates are statutory. Total legally required benefits average $3.38/hour worked (BLS ECEC, March 2026).
Frequently asked questions
How much does an employer pay in payroll taxes?
At minimum 7.65% of wages for FICA, plus unemployment taxes and workers’ comp. In total, legally required benefits average about $3.38 per hour worked.
What is the employer FICA rate?
7.65% — 6.2% for Social Security (up to the wage base) and 1.45% for Medicare on all wages.
Do employers pay unemployment tax?
Yes — federal FUTA and state unemployment taxes, plus workers’ compensation premiums, which vary by state and industry risk.
Is the employer share the same as the employee share for FICA?
Yes for the base rates — employer and employee each pay 6.2% Social Security and 1.45% Medicare.
Sources & methodology
Sources: U.S. Bureau of Labor Statistics — Employer Costs for Employee Compensation, March 2026.
FICA and FUTA rates are statutory. The $3.38/hour legally-required-benefits figure is from the BLS ECEC release (March 2026). The calculator applies statutory FICA rates to your input.
Last checked July 2026 · FICA rates reviewed annually; ECEC figure refreshed quarterly.