Every state layers its own rules on top of federal payroll requirements — rates, deadlines, and mandates that change every year. Find your state's complete guide below.
| Tax | Rate / Wage Base | Who Pays |
|---|---|---|
| Social Security (OASDI) | 6.2% on first $176,100 | Employer + Employee (each) |
| Medicare (HI) | 1.45% (no wage base cap) | Employer + Employee (each) |
| Additional Medicare Tax | 0.9% on wages over $200,000 | Employee only (employer withholds) |
| FUTA (Federal Unemployment) | 0.6% net on first $7,000 | Employer only |
| Federal Income Tax Withholding | Bracket-based (W-4 determines) | Employer withholds from employee |
State taxes are layered on top of these federal requirements. Select your state below for state-specific rates and filing deadlines.
Complete employer guides covering withholding, SUI, filing deadlines, and state-specific mandates
Federal taxes are the same everywhere — but state rules vary dramatically
41 states levy income tax on wages. Rates range from a flat 2.5% in Arizona to progressive brackets reaching 13.3% in California. Nine states have no income tax at all. Your withholding obligation depends entirely on where your employees work.
Every state runs its own unemployment program. Rates are experience-rated — new employers pay a standard rate that adjusts over time based on claims history. Missing a SUI deposit triggers separate state penalties on top of any federal penalties.
California, New York, Washington, Colorado, Oregon, New Jersey, Connecticut, Massachusetts, and others require employer contributions to state-run paid family and medical leave or disability funds. These are employer-side obligations, not optional benefits.
State deposit schedules often differ from federal schedules. A semiweekly federal depositor may face monthly state deadlines — or vice versa. Missing a state deadline triggers its own penalty, separate from any federal late-deposit penalty you might face.
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This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of the date noted above and may not reflect recent changes in federal or federal or state state law. Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with federal or state law before making payroll or compliance decisions for your business.
Every employer in the United States, regardless of which state they operate in, has to deal with the same federal payroll tax obligations. FICA is the foundation: 7.65% from the employer and 7.65% from the employee on every dollar of wages, up to the Social Security wage base. For 2026, that base is $176,100. Above that threshold, Social Security (6.2%) stops, but Medicare (1.45%) continues without a cap. Employees earning more than $200,000 in a year are also subject to an additional 0.9% Medicare surtax, which you withhold from their wages but don't match as the employer. So the combined FICA rate is 15.3% for wages up to $176,100, then drops to 2.9% above that base.
FUTA—the Federal Unemployment Tax Act—applies to the first $7,000 of wages paid to each employee per year. The gross FUTA rate is 6%, but employers in states that are current on their federal unemployment loan obligations receive a credit of 5.4%, bringing the effective net rate to 0.6% for most businesses. That works out to a maximum of $42 per employee per year in FUTA at the 0.6% rate. A handful of states are occasionally subject to FUTA credit reductions when they owe money to the federal unemployment trust fund—check the IRS FUTA credit reduction list each fall before you finalize your year-end FUTA deposits. If your state has a reduction, your effective FUTA rate is higher than 0.6%.
Federal income tax withholding is calculated based on each employee's W-4. The 2020 redesign of the W-4 eliminated personal allowances in favor of a step-based worksheet. Employees who filed a new W-4 since 2020 are on the new system; those who haven't still have their pre-2020 allowances on file, which you continue to use. There's no requirement for existing employees to file a new W-4, so many employers have a mix of old and new forms in their files. The IRS withholding tables in Publication 15-T cover both systems. Supplemental wages (bonuses, commissions, severance) can be withheld at the optional 22% flat rate as long as total supplemental wages don't exceed $1 million for the year; above that threshold, the rate jumps to 37%.
Form 941 is the quarterly employer return where you report total wages paid, income tax withheld, and FICA contributions. Due dates are April 30, July 31, October 31, and January 31. If you're a monthly depositor (meaning your lookback period tax liability was $50,000 or less), federal tax deposits are due by the 15th of the following month. Semi-weekly depositors make deposits based on their payroll date—Wednesday payrolls are deposited by the following Friday, and Friday payrolls by the following Wednesday. Deposits go through EFTPS. If you miss a deposit or deposit late, the penalty starts at 2% and climbs quickly based on how late the payment is.
W-2s must be distributed to employees and filed with the Social Security Administration by January 31 of the following year. This applies to both paper and electronic W-2s. The W-3 transmittal form accompanies paper W-2s to the SSA—if you're filing electronically through SSA's Business Services Online portal, the transmittal information is built into the upload. There's no automatic extension for W-2 filing deadlines, and the IRS has been increasingly aggressive about penalties for late or incorrect W-2 filings. At $310 per form for intentional disregard, the cost of getting this wrong adds up fast for larger payrolls. Plan to have W-2s processed and ready to distribute before January 25 each year to give yourself a buffer.
For deeper dives into specific federal requirements, see our guides on Form 941 quarterly filing and 2026 federal payroll tax rates and limits.
FICA rates, FUTA, Social Security wage base ($176,100), all 50 state SUI new-employer rates, and all 50 state income tax types in one mega-reference with tables.
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FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown of what employers owe regardless of which state they operate in.
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