Your payroll details
Affects Additional Medicare Tax threshold
$99,500 remaining before SS withholding stops
Your 2026 payroll taxes
| Social Security (6.2%) | $5,270 |
| Medicare (1.45%) | $1,233 |
| Total employee FICA | $6,503 |
| Social Security match (6.2%) | $5,270 |
| Medicare match (1.45%) | $1,233 |
| FUTA (0.6% on first $7,000) | $42 |
| Total employer cost | $6,545 |
Salary $85,000 + employer taxes $6,545
2026 FICA rates
What is How to Use the Payroll Tax Calculator?
Payroll taxes fund Social Security and Medicare through FICA (Federal Insurance Contributions Act). Employees pay 7.65% (6.2% SS + 1.45% Medicare), employers match it, and self-employed workers pay both halves as 15.3% self-employment tax. This calculator breaks down every component for 2026.
How to Use
- Enter your annual wages or net self-employment income.
- Select your employment type — W-2 Employee or Self-Employed.
- Choose your filing status — this affects the Additional Medicare Tax threshold.
- Review your FICA breakdown: Social Security, Medicare, and Additional Medicare Tax.
- For employees, see the employer match and true labor cost.
- For self-employed, see the SE tax and your 50% deduction.
Why Use This Tool?
Tips & Best Practices
- The 2026 Social Security wage base is $184,500 — once your wages exceed this, SS withholding stops.
- Self-employed workers can deduct half of their SE tax on Schedule 1, reducing AGI.
- The Additional Medicare Tax (0.9%) applies only to the employee side — employers do not match it.
- FUTA is employer-only: 0.6% on the first $7,000 of each employee's wages (after SUTA credit).
- If you work multiple jobs and exceed the SS wage base combined, you can claim a credit for excess SS withholding on your tax return.
Frequently Asked Questions
What happens when I exceed the Social Security wage base?
Once your year-to-date wages exceed $184,500 in 2026, Social Security withholding (6.2%) stops. Only Medicare (1.45%) and any Additional Medicare Tax continue. Your paycheck gets larger for the rest of the year.
Why do self-employed pay more FICA than employees?
Self-employed workers pay both the employee share (7.65%) and the employer share (7.65%) as self-employment tax, totaling 15.3%. However, they can deduct half of this tax on Schedule 1, which reduces their adjusted gross income.
Does my employer pay the Additional Medicare Tax?
No. The Additional Medicare Tax of 0.9% on wages above $200,000 (single) or $250,000 (MFJ) is employee-only. Your employer withholds it from your paycheck but does not match it.
What is FUTA tax?
FUTA (Federal Unemployment Tax Act) is an employer-only tax of 6.0% on the first $7,000 of each employee's wages. With the standard 5.4% SUTA credit, the effective rate is 0.6%, or $42 per employee per year.