Employer Facts

Employer payroll taxes, 2026

On top of each employee's wages, an employer pays federal Social Security and Medicare, federal unemployment tax (FUTA), state unemployment tax (SUTA) and, in 13 states, contributions to state disability or paid-leave programs.

Social Security
6.2%
employer share, up to $184,500
Medicare
1.45%
employer share, no cap
FUTA
0.6%
on the first $7,000, after the state credit
Supplemental withholding
22%
37% above $1 million

FUTA credit reduction states

Employers in states that owe the federal government for unemployment loans lose part of the 5.4% FUTA credit. For 2025 that was California (1.2%) and the US Virgin Islands (4.5%). For 2026, the potential reductions are California (up to 5.3%) and the US Virgin Islands (up to 4.8%), final after November 10, 2026.

Payroll taxes by state

See also the SUTA wage base and rate table.

Sources

We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.