6.2%
The Social Security tax rate for both employees and employers is 6.2% of employee compensation (for a total of 12.4%). The Social Security tax rate for those who are self-employed is the full 12.4%.

How is FICA withholding calculated?

To calculate FICA tax contribution for an employee, multiply their gross pay by the Social Security and Medicare tax rates. For example, if an employee’s taxable wages are $700 for the week, their social security contribution would be: $700.00 x 6.2% = $43.40.

Do you have to withhold FICA taxes from employees?

Employers must withhold FICA taxes from employees’ wages plus pay their own portion of FICA taxes, which are based on a percentage of each employee’s wages. FICA taxes are administered by the IRS and Social Security Administration.

How do I calculate the amount of FICA tax withholding?

This article provides a step-by-step guide to doing the withholding of FICA taxes. FICA taxes are taxes for Social Security and Medicare. The FICA tax is shared by employees and employers, so one-half of the tax is deducted from employee paychecks each payday.

What are the tax rates for Social Security and FICA?

The breakdown for the two taxes is 6.2% for Social Security (on wages up to $137,700) and 1.45% for Medicare (plus an additional 0.90% for wages in excess of $200,000). Also known as payroll taxes, FICA taxes are automatically deducted from your paycheck.

How is FICA calculated for self employed workers?

Self-employed workers and independent contractors pay both the employer and employee contributions for FICA. This is mandated by the Self-Employment Contributions Act (SECA). You can use Schedule SE (Form 1040) to figure out how much tax is due on your self-employment net earnings. The total contribution amounts taken from net earnings are: