Employer’s Social Security Payroll Tax for 2024
The employer’s Social Security payroll tax rate for 2024 (January 1 through December 31, 2024) is the same as the employee’s Social Security payroll tax: 6.2% of each employee’s first $168,600 of wages, salaries, etc. If an employee’s 2024 wages, salaries, etc. exceed $168,600, the amount in excess of $168,600 is not subject to the Social Security tax. Hence, the maximum amount of the employer’s Social Security tax for each employee in 2024 is $10,453.20 (6.2% X $168,600).
Employer’s Social Security Payroll Tax for 2025
The employer’s Social Security payroll tax rate for 2025 (January 1 through December 31, 2025) is 6.2% of each employee’s first $176,100 of wages, salaries, etc. (This amount is identical to the employee’s Social Security tax that is withheld from the employee’s wages, salaries, etc.) If an employee’s 2025 wages, salaries, etc. are greater than $176,100, the amount in excess of $176,100 is not subject to the Social Security tax. Hence, the maximum amount of the employer’s Social Security tax for each employee in 2025 is $10,918.20 (6.2% X $176,100).
In effect, the employer is matching the Social Security payroll tax withheld from each employee’s wages, salaries, etc. The employer is responsible for remitting the amounts withheld from employees’ wages and the employer’s matching amount to the U.S. government by specified dates.
Social Security Payroll Tax is One Part of the FICA Payroll Tax
In addition to the Social Security payroll tax, there is also a Medicare payroll tax of 1.45% and an Additional Medicare Tax for higher income taxpayers. (The combination of the Social Security tax and the Medicare tax is referred to as FICA.) The employer must match each employee’s Medicare tax of 1.45% (but does not match the employee’s Additional Medicare Tax). Information on the Additional Medicare Tax can be found at www.irs.gov.
