Course Outline
Join PRO

What is the employee's Social Security tax rate for 2022 and 2023?

Author:
Harold Averkamp, CPA, MBA

Social Security Payroll Tax for 2022

The employee’s Social Security payroll tax rate for 2022 (January 1 through December 31, 2022) is 6.2% of the first $147,000 of wages, salaries, etc. An employee’s 2022 earnings in excess of $147,000 are not subject to the Social Security tax.

Social Security Payroll Tax for 2023

The employee’s Social Security payroll tax rate for 2023 (January 1 through December 31, 2023) is 6.2% of the first $160,200 of wages, salaries, etc. An employee’s 2023 earnings in excess of $160,200 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).

Join PRO to Track Progress
Must-Watch Video

Learn How to Advance Your Accounting and Bookkeeping Career

  • Perform better at your current job
  • Refresh your skills to re-enter the workforce
  • Pass your accounting class
  • Understand your small business finances
Watch the Video

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,645 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Certificates of
Achievement

Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
Badges and Points
  • Work towards and earn 30 badges
  • Earn points as you work towards completing our course
View PRO Plus Features
Course Outline
Take the Tour Join Pro Upgrade to Pro Plus