To calculate the Social Security deduction in your paycheck, multiply your gross pay by the 6.2% Social Security tax rate. For example, if you gross $2,500 in a pay period, you’d multiply $2,500 by .062, resulting in a Social Security tax deduction of $155 for the pay period. What...
Example:Your 2009 wages are $130,000. The social security wage base for that year is $106,800, so you pay social security tax on only the first $106,800 of wages. When your retirement benefit is calculated, you’ll be treated the same as someone who had $106,800 of wages that year...
To understand how Social Security tax rates are handled for employees versus self-employed individuals, it helps to consider an example. An employee might be required to pay Social Security taxes at a rate of 6.2 percent, for instance, and his employer would have to match this amount. This ...
Most people can't avoid paying Social Security taxes on their employment and self-employment income. There are, however, exemptions available to specific groups of taxpayers.
The tax rate on Social Security for most people: 0% For the majority of taxpayers,Social Security benefits end up being free of tax. That's because you're allowed to have up to a certain amount of income before you have to includeanyof your Social Security on your tax return. ...
social security (redirected fromSocial Security Tax) Thesaurus Legal Financial Acronyms Encyclopedia Related to Social Security Tax:Medicare Tax,Federal income tax social security n. 1.oftenSocial SecurityAbbr.SSA government program that provides economic assistance to persons faced with unemployment, disabil...
Both employers and workers pay social security tax, splitting the total amount due for each employee. The Social Security wage base is the maximum amount of an employee’s gross earnings that can be subject to Social Security tax. This number typically increases every year. The Social Security ...
Any income you earn beyond the wage cap amount is not subject to a 6.2% Social Security payroll tax. For example, an employee who earns $170,000 in 2024 will pay $10,453.20 in Social Security taxes ($168,600 x 6.2%). Keep in mind, however, that there is no wage base limit for ...
英语翻译 社会保障税(Social Security Tax)是用于筹集社会保障体系所需资金的一种税收或税收形式的缴款.起源于1935年美国联邦政府通过立法开征的工薪
The Social Security tax is the revenue collected by the U.S. government to finance the Social Security program. The tax is automatically collected via employee payroll, and both employers and employees fund the program. Self-employed people pay it via the self-employment tax as both employees a...