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Employer Payroll Taxes: The True Costs of Hiring a New Employee

Employer payroll taxes are calculated by combining 50 percent of Social Security taxes (12.9 percent of employee wages), 50 percent of Medicare taxes (2.9 percent), and 100 percent of federal and state unemployment taxes. While you can make these calculations yourself, it’s much faster and easier to use a payroll software to complete these calculations for you.

One miscalculation of employer payroll taxes could result in hundreds or even thousands of dollars in interest and penalties.

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