6 Free Payroll Tax Calculator for Employers

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Rinkesh Anandani

Senior editor

Parul Saxena

Chief editor

Last updated: July 8, 2021

HRMantra

HRMantra : No. 1 In Payroll Software

Let’s face it. We all dread the idea of processing the payroll. 

It can be such a challenging task, especially when it comes to calculating payroll tax.

 What Is Payroll Tax? 

Payroll tax is not a single tax. It is a blanket term used to cover all types of taxes paid on the salaries of employees. 

When you hire an employee, you are responsible for deducting a portion of employee wages to pay a certain tax on their behalf. 

Depending on the nature of the employment, there are different taxes such as professional tax, TDS, provident fund, and more. 

It doesn’t end here. You also need to pay payroll taxes on each of your staff members from your revenue. 

Looking for Payroll Software? Check out SoftwareSuggest’s list of the best payroll software solutions.

Unless you are aware of all types of taxes, you can get yourself in big trouble. Usually, companies who fail to deposit the tax amount or deposit the wrong amount have to bear heavy penalties from the government. 

This is the sole reason why most of the companies prefer to outsource their payroll process. 

In fact, the number of organizations who fully outsource their payroll functions has risen from 8% in 2015 to 12% in 2019. 

Fortunately, you will find many online payroll tax calculators designed to make your task easier. 

Payroll tax calculators for employees make it easy to calculate tax with accuracy and efficiency. 

If you are a small company who couldn’t afford to outsource your payroll or have a full-fledged human resource team, a payroll tax calculator can come to your rescue. 

I’ve compiled a list of free payroll tax calculators that you can consider using to calculate accurate payroll amounts. 

Top Payroll Tax Calculators You Should Know

1. Gusto

Gusto understands how calculating payroll tax for your employees can be a daunting task. That’s why they came up with a full-proof solution for businesses in need. 

It offers a free payroll tax calculator that helps you accurately calculate the amount of wages to be paid. In other words, it enables you to calculate the cost of your hire. 

This solution is well-informed about all the taxes, including the taxes that you pay as an employer (federal and state-level unemployment taxes) and the one you deduct on behalf of your employees (or withholding taxes). 

In fact, it also takes into consideration Medicare and Social Security. It automatically deducts wages for health care, such as 401(k) plans from paychecks. Thus, it saves you a lot of time and effort while improving efficiency. 

gusto payroll

Features

  • Can help calculate take-home pay for hourly employees
  • Has a rich interface
  • Offers active support in case of any trouble

Pros

  • Highly scalable
  • Performance and reliability

Cons

  • Doesn’t support multiple currencies

2. Onpay

Onpay is a full-fledged payroll service solution that has designed a calculator for calculating payroll taxes. 

It makes it easy to calculate all deductions and withholdings while paying the net salary amount. The best part is that it can handle tax deductions as per the laws of every state. 

Onpay calculator can be accessed on the phone. This ensures that there is no delay in the processing of salaries, even when the manager is travelling. 

You can calculate employees’ payroll taxes in five simple steps, saving you time and effort.

onpay dashboard

Features

  • Includes information on tax rates for every state
  • Has an intuitive and user-friendly interface
  • Supports six levels of user permissions

Pros

  • Easy to set up
  • Active customer support

Cons

  • Few glitches were reported

3. Payroll4Free

If you are looking for a solution that will help you calculate all of your federal, state and local taxes, then use the Payroll4Free calculator. 

It is specifically designed to meet the needs of small businesses. If you have 25 or fewer people working, you can use the entire Payroll4Free payroll service for free. 

It will give you access to filled out tax forms. Moreover, it can make all the necessary deposits and file the return on your behalf. 

Besides, Payroll4Free platform can be accessed by both you and your employees from any device. Thus, you can process payrolls on-the-go, and your employees can review their pay information online, including their personal data and accrued vacation time.

Payroll4Free dashboard

Features

  • Enables you to easily export payroll data to another software
  • Has a team of experienced professionals to help with payroll assistance
  • Can calculate federal, state, and local taxes, in all 50 states

Pros

  • Guided step-by-step account setup tool
  • Detailed reporting

Cons

  • A bit slow

4. OpenPro

OpenPro offers a powerful and simple to use web-based payroll application. 

This payroll system has a well-designed payroll tax calculator embedded in it that can help you accurately calculate your employees’ salaries. 

While calculating, it takes into consideration all the standard employee and employer deductions for all individuals. It is well-versed with state and federal income tax, and social security. 

One noteworthy thing is that there is no limit to the number of total standard deductions that can be included. It allows you to display all deductions in tabular format for easy understanding. 

Not only that, but it can also handle group health insurance deductions and track employee benefits. 

openpro dashboard

Features

  • Can run on Windows, Mac OS, or Linux
  • Can be used by all sizes of businesses – small, mid and large
  • Seamlessly integrates with third-party applications

Pros

  • Easy to personalize
  • Highly active customer service

Cons

  • It is unclear what degree of international payroll functionality is available.

5. Checkmark

Checkmark is one of the most popular free payroll tax calculators currently. It is particularly because it offers an intuitive interface that enables calculating payroll tax with ease. 

The best thing is that you can quickly calculate paychecks for both your salaried- and- hourly-based employees. 

You just need to select the “Hourly” or “Salary” option under “Pay Type,” enter the employee’s pay details, and you will have your results.

In fact, it even guarantees that they stay up-to-date with any latest changes done to Federal and State taxes. It makes sure you stay informed on the ever-changing payroll regulations.

checkmark payroll

Features

  • It is quite easy to set up and use
  • Allows you to send pay stubs and other information directly via email
  • Can help you file your tax return

Pros

  • Great support
  • Accuracy and reliability

Cons

  • Not suitable for large companies

Summing Up

These free payroll tax calculators are a good option for companies who can hire a few handfuls of employees to carry out payroll procedures. 

It not only saves time but also ensures that all your employees are paid on-time and accurately. 

So are you planning to use any of these free payroll tax calculators? Tell us in the comment below. 

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Rinkesh is a Blogger and Digital marketing executive at SoftwareSuggest. He loves to share knowledge of his field. In time off he follows his hobbies like traveling, plays musical instruments. His expertise is writing a blog on software.

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