Payroll Tax Rates

What Are Payroll Tax Rates?

Payroll taxes for employees are deductions made from an employee’s paycheck, including:

• Federal income tax

• State income tax

• Social Security

• Medicare

Payroll taxes for employers are made up of:

• Federal unemployment tax

• State unemployment tax

• Social Security 

• Medicare

As of 2020, payroll tax rates are as follows:

Federal Unemployment Tax

Employer pays: 6%

Employee pays: 0%

State Unemployment Tax

Varies by state. To find this information, visit your state’s Department of Labor website.

Social Security 

Employer pays: 6.2%

Employee pays: 6.2%

Medicare

Employer pays: 1.45%

Employee pays 1.45%