| Contribution | Rate or basis |
|---|---|
| Social Security (employer share) | 6.2% of wages up to the annual wage base |
| Medicare (employer share) | 1.45% of all wages |
| Federal unemployment (FUTA) | 6.0% on the first $7,000 per employee, usually reduced to 0.6% by the state credit |
| State unemployment (SUTA) | Rate set by each state |
| Workers’ compensation | Insurance premium, required in most states |
The true cost of an hour of work is the wage plus employer contributions. Use the labor cost percentage calculator and see payroll quarters for filing dates. This is general information, not tax advice.
Most employer taxes are a percentage of wages, so wrong hours mean wrong taxes. EZTime records hours, breaks and overtime and exports them ready for payroll.
The employer share of Social Security and Medicare taxes, and a 401(k) match.
7.65% of wages: 6.2% Social Security (up to the wage base) and 1.45% Medicare.
No. They are paid by the employer on top of wages.
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Updated November 2026. General information only; not tax advice.