Number of the week · checked 19 October 2026
On top of wages, an employer pays 7.65% in FICA tax.
Employers pay 6.2% Social Security tax and 1.45% Medicare tax, matching the employee's share. Social Security stops at $184,500 of wages in 2026.
The short version
As an employer, you pay 6.2% Social Security tax and 1.45% Medicare tax on wages, matching what you withhold from the employee.
That's 7.65%. Social Security stops at $184,500 of wages in 2026. Medicare doesn't stop. On a $60,000 salary, that's $4,590.
Add federal unemployment tax, usually 0.6% on the first $7,000, plus state payroll taxes. Price on the total.
In numbers
| Tax | Employer rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | Up to $184,500 |
| Medicare | 1.45% | All wages |
| FUTA | 6.0%, usually 0.6% after the state credit | First $7,000 |
Sources
Checked on 19 October 2026.
"The rate of social security tax on taxable wages is 6.2% each for the employer and employee."
IRS Publication 15 (2026), Employer's Tax Guide. For use in 2026. "The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2025."
IRS Publication 15 (2026). Same publication. "The OASDI contribution and benefit base is $184,500 for remuneration paid in 2026"
Social Security Administration, Cost-of-Living Increase and Other Determinations for 2026. 90 FR 49047, published 3 November 2025.
$4,590 on a $60,000 salary is our arithmetic (7.65%). State payroll taxes come on top. California employers paid a higher FUTA rate for 2025 because of a federal credit reduction of 1.2%.
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Psst is made by Zain Ali, who co-founded Aiden Risk, a licensed insurance brokerage. This isn't insurance advice.