The employee tax rate for Social Security is 6.2% — and the employer tax rate for Social Security is also 6.2%. So, the total Social Security tax rate percentage is 12.4%. Only the employee portion of Social Security tax is withheld from your paycheck. The 2018 wage-base limit is $118,500.
Social Security Tax: A Social Security tax is the tax levied on both employers and employees to fund the Social Security program. Social Security tax is usually collected in the form of payroll
2008 Social Security and Medicare Tax Withholding. For 2008, the maximum limit on earnings for withholding in the Old-Age, Survivors, and Disability (OASDI) portion of the Social Security tax increases from $97,500.00 to $102,000.00.This is a $4,500 increase from the 2007 limit.
The following individuals are exempt from the payment of provisional tax - • Individuals below the age of 65 who do not carry on a business and whose taxable income - - will not exceed the tax threshold for the tax year; or - from interest, dividends and rental will be R10 000 or less for the tax year.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year. Determine the amount of withholding for social security and Medicare taxes by multiplying each payment by the employee tax rate.
Historical FICA Tax Information. Social Security and Medicare taxes are based on gross earnings of each employee each year. Self-employment taxes are based on net income of the self-employed person each year.