How is employer social security tax calculated

There are several different types of payroll taxes, including unemployment taxes, income taxes and FICA taxes. The funds are used to pay for both Social Security and Medicare. Medicare tax rates rose from 0. For the past couple of decades, however, FICA tax rates have remained consistent. Employers and employees split the tax. For both of them, the current Social Security and Medicare tax rates are 6. So each party pays 7.

To calculate your FICA tax burden, you can multiply your gross pay by 7. Self-employed workers get stuck paying the entire FICA tax on their own.

The current rate for Medicare is 1. Refer to Notice PDF and Notice PDF for information allowing employers to defer withholding and payment of the employee's share of Social Security taxes of certain employees. Additional Medicare Tax applies to an individual's Medicare wages that exceed a threshold amount based on the taxpayer's filing status. Employers are responsible for withholding the 0. How to calculate it Which tax forms do I need to file? How do I actually pay these taxes?

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