Generated 10/9/2026
Pay Raise Impact Calculator
See both sides of a raise: what the employee actually takes home, and what it truly costs the company — including FICA, FUTA, and SUTA.
+13.6% raise · +$6,240.00/yr gross
Employee Impact — Per Bi-Weekly Paycheck
* Federal income tax is a flat 22% estimate. A raise is regular pay, not a supplemental payment, so actual withholding follows the employee’s W-4 and tax bracket (10% to 37%). State rate is configurable in Advanced Options. If the employee's annual pay is above a wage base, the per-check figures are the year's average, so the year's total is right.
Employer Burden — Additional Cost Beyond Base Raise
* FUTA is 6.0% less the 5.4% state credit = 0.6% on the first $7,000 per employee (IRS Pub. 15, section 14), assuming the full credit: no credit-reduction state, state tax paid on time. SUTA uses the rate and wage base in Advanced Options (default: most common new-employer rate and median wage base, DOL Jan 2026). Both are wage-base limited, so a raise on pay already above the base adds nothing; shown as amortized per-paycheck amounts.
For every $1.00 of gross raise, the employee takes home approximately $0.65 and the employer pays approximately $1.077. That 7.7% employer overhead is mostly FICA.