An HR Glossary for HR Terms
Glossary of Human Resources Management and Employee Benefit Terms
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%
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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%