How Much Social Security Tax Do You Have to Pay?
How much Social Security tax you have to pay depends on whether you are an employer, an employee or self-employed. In a few rare circumstances, you may be exempt from paying any Social Security tax.
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Employees
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If you work for someone else, you are an employee, and your employer will withhold from each of your paychecks 6.2 percent of your wages. So, as an employee, you pay 6.2 percent of your income to Social Security tax.
Employers
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Employers also have to pay Social Security tax on their employees' wages. The employer's portion is also equal to 6.2 percent of each employee's earnings, which means that a total tax of 12.4 percent is paid on the employee's wages.
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Self-Employed
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Self-employed individuals pay "self-employment tax" which is equal to 15.3 percent of all self-employment income. The self-employment tax takes the place of Social Security and medicare tax that employees pay.
Medicare Tax
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Many people confuse Medicare tax and Social Security tax, often thinking they are the same when they are not. Medicare tax is an additional wage tax that is equal to 2.9% of an employee's earnings. Like Social Security tax, the employee pays half and the employer pays half, meaning they each pay 1.45%.
Exceptions
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Individuals who don't have to pay any Social Security tax include self-employed people who earn less than $400 and college students who work for the college they are attending.
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