What is Social Security Tax?
Security tax rates are determined by law each year and apply to both employees and employers. Social Security taxes are collected to provide benefits to retired and disabled workers, as well as to survivors of deceased workers. The Social Security tax rate is set by law and is subject to change by the government.
As of 2022, the Social Security tax rate for employees and employers is 6.2% each, for a total of 12.4%. Self-employed individuals are responsible for paying both the employee and employer portions, resulting in a total Social Security tax rate of 12.4%.
The Social Security tax applies to earned income up to a certain limit, known as the Social Security wage base. As of 2022, the Social Security wage base is $147,000. This means that only income earned up to $147,000 is subject to the Social Security tax.
How to Calculate Social Security Tax?
Social Security Tax calculator uses Social Security Tax = Earnings in a Year*(Social Security Tax Rate*0.01) to calculate the Social Security Tax, The Social Security Tax formula is defined as a percentage of an individual's income that is withheld from their paycheck to fund the Social Security program in the United States. Social Security Tax is denoted by SST symbol.
How to calculate Social Security Tax using this online calculator? To use this online calculator for Social Security Tax, enter Earnings in a Year (Epy) & Social Security Tax Rate (ISSR) and hit the calculate button. Here is how the Social Security Tax calculation can be explained with given input values -> 20489.76 = 165240*(12.4*0.01).