Small Business Payroll Tax Calculator 2025
Calculate accurate payroll taxes for your small business including federal, state, FICA, and unemployment taxes. Get complete breakdowns for both employee and employer costs.
Employee Information
From W-4 form
For SS wage base calculations
Understanding Small Business Payroll Taxes
Payroll taxes are a significant cost for small businesses, often adding 15-20% to your base labor costs. Understanding these taxes helps you budget accurately and ensure compliance with federal and state requirements.
Employee Payroll Tax Components
Federal Income Tax
Withheld based on W-4 information and tax brackets. Ranges from 10% to 37% for 2025.
FICA Taxes
Social Security (6.2%) up to $168,600 wage base, plus Medicare (1.45%) with no limit.
Additional Medicare Tax
Extra 0.9% on wages over $200K (single) or $250K (married). No employer match.
State Income Tax
Varies by state. Nine states have no income tax, while others range from 1% to 13%+.
Employer Tax Responsibilities
FICA Matching
Employers must match employee FICA contributions dollar-for-dollar:
- 6.2% Social Security match (up to $168,600 wage base)
- 1.45% Medicare match (no wage limit)
- No matching required for additional Medicare tax
Unemployment Taxes
- FUTA (Federal): 6% on first $7,000, reduced to 0.6% with state tax credit
- SUTA (State): Rates vary by state and experience rating
- New employers: Usually get standard rate until claims history develops
Compliance and Filing Requirements
Quarterly (Form 941)
Report federal income tax, Social Security, and Medicare taxes quarterly.
Annual (Form 940)
File annual FUTA tax return and reconcile unemployment taxes.
Year-End (W-2s)
Issue W-2s to employees and file with Social Security Administration.
Small Business Payroll Tax Tips
Budget for Total Labor Costs
Add 20-25% to gross wages to account for all employer taxes and benefits.
Make Timely Deposits
Most small businesses deposit monthly by the 15th of the following month.
Track Year-to-Date Wages
Monitor YTD earnings to properly apply Social Security wage base limits.
Consider Payroll Services
Professional payroll services can handle calculations, deposits, and filings automatically.
Important Payroll Tax Disclaimer
This calculator provides estimates based on 2025 federal tax rates and general state tax assumptions. Actual payroll taxes may vary based on local taxes, specific state requirements, employee benefits, and other factors not included in this calculation. State unemployment rates can vary significantly based on employer experience ratings. Always consult with a payroll professional, accountant, or tax advisor for precise calculations and compliance guidance specific to your business situation.