Social Security Payroll Tax for 2024
The employee’s Social Security payroll tax rate for 2024 (January 1 through December 31, 2024) is 6.2% of the first $168,600 of wages, salaries, etc. An employee’s 2024 earnings in excess of $168,600 are not subject to the Social Security tax.
Social Security Payroll Tax for 2025
The employee’s Social Security payroll tax rate for 2025 (January 1 through December 31, 2025) is 6.2% of the first $176,100 of wages, salaries, etc. An employee’s 2025 earnings in excess of $176,100 are not subject to the Social Security tax.
Social Security Payroll Tax is One Part of the FICA Payroll Tax
The Social Security payroll tax is one of the two components of the FICA payroll tax. The other component is the Medicare tax which applies to every dollar of an employee’s earnings. In other words, there is no annual wage limit or cap for the Medicare tax. In fact, there is also an Additional Medicare Tax that applies to high income employees.
An Employer Must Match its Employees’ FICA Taxes
In addition to the employees’ Social Security and Medicare payroll taxes, the employer must match the amounts that were withheld from the employees’ paychecks (except that the employer does not match the Additional Medicare Tax).
