Payroll Calculator 2025
Calculate complete employee payroll including paycheck deductions, employer taxes, and total payroll costs with the latest 2025 tax rates. Includes federal taxes, state taxes, FICA, unemployment insurance, and all employer contributions for accurate payroll management.
Payroll Calculator
Calculate employee payroll, employer taxes, and total payroll costs with 2025 rates
2025 Payroll Tax Information
Employee Taxes (2025)
Federal Income Tax
Based on tax brackets and filing status
Social Security
On wages up to $168,600
Medicare
On all wages + 0.9% over $200K
State Income Tax
Varies by state (9 states have no income tax)
Employer Taxes (2025)
Social Security Match
Employer matches employee contribution
Medicare Match
Employer matches employee contribution
Federal Unemployment (FUTA)
On first $7,000 (0.6% after credit)
State Unemployment (SUTA)
Varies by state and experience rating
Additional Costs (2025)
Workers' Compensation
Varies by industry and state
State Disability Insurance
Required in some states (CA, NY, etc.)
Health Insurance
Employer contribution to premiums
Retirement Benefits
401(k) match and other benefits
Payroll Frequencies
Weekly
52 pay periods per year. Common for hourly employees and provides consistent cash flow.
Bi-weekly
26 pay periods per year. Most common frequency, balances administrative costs with employee needs.
Semi-monthly
24 pay periods per year. Typically 15th and last day of month, easier for salary calculations.
Monthly
12 pay periods per year. Lowest administrative cost but may cause cash flow issues for employees.
Payroll Calculation Examples (2025)
Salaried Employee
Position: Marketing Manager
Annual Salary: $85,000
Location: California
Pay Frequency: Bi-weekly (26 pays)
Bi-weekly Payroll Breakdown
Hourly Employee
Position: Construction Worker
Hourly Rate: $28.50/hour
Hours Worked: 45 hours (5 OT)
Location: Texas
Weekly Payroll Breakdown
Multiple Employees
Company: Small Business (10 employees)
Total Gross Payroll: $45,000/month
Location: Florida
Benefits: Health insurance, 401(k)
Monthly Payroll Costs
Contract Employee
Position: IT Consultant
Contract Rate: $75/hour
Hours per Month: 160 hours
Classification: 1099 Independent Contractor
Monthly Contract vs Employee Cost
Frequently Asked Questions About Payroll
The true cost of an employee is typically 125-140% of their gross salary. This includes employer taxes (7.65% FICA), unemployment taxes, workers' compensation, benefits, and administrative costs. A $50,000 salary employee costs approximately $62,500-$70,000 total.
Employers pay: Social Security (6.2%), Medicare (1.45%), Federal Unemployment Tax (0.6% on first $7,000), State Unemployment Tax (varies by state), and Workers' Compensation insurance. These add approximately 8-12% to gross wages.
Bi-weekly (26 pay periods) is most common, balancing administrative efficiency with employee cash flow needs. Weekly (52 periods) provides better cash flow but higher costs. Semi-monthly (24 periods) works well for salaried employees.
Keep payroll records for at least 3 years, including: employee information, hours worked, wages paid, tax withholdings, and benefit deductions. Some states require longer retention periods. Digital records are acceptable if properly maintained.
Important Payroll Information
Payroll calculations are complex and vary by state, employee classification, and benefit elections. This calculator provides estimates based on 2025 federal and state tax rates, standard deductions, and typical employer costs. Actual payroll costs may vary based on specific state requirements, local taxes, industry-specific regulations, workers' compensation rates, and benefit plan designs. Employers should consult with payroll professionals, accountants, or HR specialists for accurate payroll processing and compliance. Tax rates and regulations are subject to change throughout the year.