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

Author:
Harold Averkamp, CPA, MBA

Employer’s Social Security Payroll Tax for 2022

The employer’s Social Security payroll tax rate for 2022 (January 1 through December 31, 2022) is the same as the employee’s Social Security payroll tax: 6.2% of each employee’s first $147,000 of wages, salaries, etc. If an employee’s 2022 wages, salaries, etc. exceed $147,000, the amount in excess of $147,000 is not subject to the Social Security tax. Hence, the maximum amount of the employer’s Social Security tax for each employee in 2022 is $9,114.00 (6.2% X $147,000).

Employer’s Social Security Payroll Tax for 2023

The employer’s Social Security payroll tax rate for 2023 (January 1 through December 31, 2023) is 6.2% of each employee’s first $160,200 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 2023 wages, salaries, etc. are greater than $160,200, the amount in excess of $160,200 is not subject to the Social Security tax. Hence, the maximum amount of the employer’s Social Security tax for each employee in 2023 is $9,932.40 (6.2% X $160,200).

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.

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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.

Learn More About Harold

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