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what is social security tax

what is social security tax插图

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  • How much is Social Security tax?

  • How much is Social Security tax? Social Security tax is a total flat rate of 12.4%. The employer and employee each pay half. You will withhold 6.2% from employee wages, and you will contribute 6.2% based on employee wages.

  • What is the Social Security tax on self-employment income?

  • All wages and self-employment income up to the Social Security wage base are subject to the 12.4% Social Security tax. The wage base is adjusted periodically to keep pace with inflation. It was increased from $128,400 to $132,900 in 2019.

  • What is an example of a Social Security tax?

  • Examples of Social Security Taxes. The Social Security tax is a regressive tax, meaning that a larger portion of lower-income earners’ total income is withheld, compared to that of higher income earners. Consider two employees, Izzy and Jacob.

  • Why do workers have to pay Social Security tax?

  • Workers have to pay the Social Security tax for the same reason we have to pay any sort of tax: to support government programs in our society. Social Security benefit payments are, in essence, money that we receive from the government.

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