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How do you calculate the employer's portion of payroll taxes?

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The employer portion of the payroll taxes is computed by multiplying the gross wage by the appropriate percentage assigned to that tax. For example, the social security percentage would be 6.2% each for the employer and the employee. Medicare would be 1.45% for each. Your state/county will each have their own percentages. Answer 1. The employer pays one half of the FICA taxes at 7.65% (Medicare is 1.45% - OASDI is 6.2%)
2. The employer pays Federal Unemployment Tax (FUTA) which is calculated at .8% of the first $7000 of employee wages - works out to $56 per employee per year if they make over $7000.00.
3. The employer pays State Unemployment Taxes - rates and amount vary by State. The remaineder of the taxes are withheld from the emplyees paychecks.
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