One of the most frequently asked questions from employers for payroll taxes is how much is payroll tax and how does it impact payroll costs? Payroll tax is a term that describes the required contribution to programs like Social Security and Medicare. Understanding payroll taxes calculation can help businesses get the payroll right. Employers need to take into consideration how much they pay employees, what deductions they take, and what taxes they have to pay out. If you're wondering how can I calculate payroll taxes, you should review current tax regulations, and make sure that a payroll calculation is done correctly every pay period.