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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).

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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.

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