What payroll taxes does a Maryland employer actually pay?

Employers pay the matching FICA half (6.2% Social Security up to the wage base plus 1.45% Medicare), federal FUTA at an effective 0.6% on the first $7,000, and Maryland state unemployment insurance on the first $8,500 of wages. From July 2025 they also pay a FAMLI paid-leave contribution.

What is Maryland's SUI wage base and rate?

Maryland charges state unemployment insurance only on the first $8,500 of each employee's annual wages for 2025. New employers generally pay 2.6%; experienced employers are rated between 0.3% and 7.5% based on their claims history.

What is the effective FUTA rate?

The headline FUTA rate is 6.0% on the first $7,000, but employers in states without a credit reduction receive a 5.4% credit, leaving an effective rate of 0.6% — a maximum of $42 per employee per year. Maryland has no credit reduction for 2025.

Does Maryland have an employer disability or paid-leave tax?

Maryland has no SDI payroll tax, but its FAMLI paid family and medical leave program began collecting contributions on July 1, 2025. The total rate is 0.90% of wages, split between employer and employee, with an employer share of up to 0.45%.

Are these the same as the taxes withheld from the employee?

No. This tool shows the employer's own cost on top of wages. Employee withholding — their FICA half, federal income tax, and Maryland state and local income tax — is a separate calculation and is not employer expense.

Maryland Employer Payroll Tax Calculator

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Hiring in Maryland costs more than the wage you advertise. On top of gross pay, an employer owes federal unemployment tax, the employer half of Social Security and Medicare, Maryland state unemployment insurance, and — since mid-2025 — a share of the new FAMLI paid-leave contribution. This calculator adds all of these so you can budget the true cost of an employee.

How it works

Each tax applies to a different slice of wages, and the tool caps every line at the correct base before summing:

FUTA          = min(wages, $7,000)   × 0.6%
Social Security = min(wages, $176,100) × 6.2%
Medicare      = wages × 1.45%
Maryland SUI  = min(wages, $8,500)   × your rate (default 2.6%)
FAMLI (opt.)  = wages × 0.45%
total         = sum of the above

The wage bases matter: a high earner still only generates $42 of FUTA and a capped SUI bill, so the employer’s effective tax rate falls as salary rises.

Tips and notes

Use your real assigned SUI rate from the Maryland Department of Labor rather than the new-employer default once you have one — a seasoned employer with low turnover can pay as little as 0.3%, while a high-churn business can pay 7.5%. The FAMLI line is optional because the program began collecting on July 1, 2025; turn it off for a pre-July figure. This tool covers the employer side only — amounts withheld from the employee’s paycheck are a separate matter and are not an employer expense.