Staffing Payroll Tax Guide
The employer payroll taxes behind every placement, federal FICA and FUTA, plus how state withholding and SUTA work.
Federal Employer Taxes
FICA — 7.65%
Social Security at 6.2% (up to the annual wage base the IRS updates each year) plus Medicare at 1.45%. Employers match the employee's share. An additional 0.9% Medicare surtax applies to employee wages over $200,000 (withheld from the employee, not matched).
FUTA — 6.0% (0.6% net)
Federal unemployment tax on the first $7,000 of each employee's wages, reduced to an effective 0.6% once you take the standard 5.4% state credit. Employer-paid only.
State Taxes: SUTA & Withholding
State unemployment (SUTA) is employer-paid and experience-rated, each state sets its own rate range and taxable wage base and updates them annually. State income-tax withholding applies only where the state levies an income tax. Below are the states FreshStaff's native payroll supports today, with the official agency for current rates.
| State | State Income-Tax Withholding | Official Agency (current SUTA & rules) |
|---|---|---|
| Georgia | Yes | Georgia Department of Labor → |
| South Carolina | Yes | SC Dept. of Employment & Workforce → |
| Florida | No state income tax | Florida Dept. of Revenue (Reemployment Tax) → |
| Alabama | Yes | Alabama Department of Labor → |
| North Carolina | Yes | NC Division of Employment Security → |
| Texas | No state income tax | Texas Workforce Commission → |
Verify current figures. SUTA rates, taxable wage bases, and the Social Security wage base change every year and by employer. This guide explains the mechanics, not this year's specific numbers, always confirm with the official agency or your payroll system.
FreshStaff's native payroll runs federal withholding, FICA, FUTA, and state withholding for these states, with employer-configurable SUTA, so the taxes above are computed on every check, not handed to a third party.
Frequently Asked Questions
What payroll taxes does an employer pay?
Federally, employer FICA (7.65%: Social Security 6.2% up to the annual wage base plus Medicare 1.45%) and FUTA (6.0% on the first $7,000 of wages, usually 0.6% net after the 5.4% state credit). At the state level, SUTA (state unemployment), and state income-tax withholding where the state has an income tax.
How is SUTA calculated?
SUTA is employer-paid and experience-rated: your rate depends on your state and your unemployment claims history, applied to a state-set taxable wage base. Both the rate range and the wage base are set per state and updated annually, so confirm your current figures with the state agency.
Which states have no income tax withholding?
Several states levy no personal income tax, including Florida and Texas, so there's no state income-tax withholding there. State unemployment tax (SUTA/reemployment tax) still applies.
Payroll Taxes, Computed Natively
Federal and multi-state employer taxes on every check, feeding invoices and ACA filing, at $0 recruiter seats.