How to Figure Social Security & Medicare Taxes Withheld From Paychecks
Social Security and Medicare payroll taxes are flat-rate percentage taxes. This means that the percentage withheld from your paycheck is always the same, regardless of how much your paycheck is, your filing status or the number of withholding allowances you claim. In addition, if you claim an exemption from income tax withholding, the exemption only applies to income tax withheld and does not apply to Social Security and Medicare tax. Because a flat-rate percentage applies, you can easily figure the amount of Social Security and Medicare tax withheld on your pay with a few easy calculations.
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Instructions
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Calculate your gross income for the pay period. This includes your hourly rate pay, multiplied by the number of hours you work or your salary rate, plus any overtime, bonus or commission payments you expect to receive.
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Subtract any pre-tax benefits you elect to have withheld from your paycheck. The result is your income subject to Social Security and Medicare tax. However, do not subtract the amount you contribute to retirement plans from your gross income for the purpose of this calculation. Most common pre-tax deductions are not subject to Social Security or Medicare taxes, with the exception of retirement plan contributions. Retirement plan contributions are not subject to income taxes, but are subject to Social Security and Medicare taxes.
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Multiply your income subject to Social Security and Medicare tax by 7.65 percent (.0765). This is the combined rate for Social Security and Medicare tax. Separately, the Social Security tax equals 6.2 percent and Medicare tax equals 1.45 percent. The result is the amount of Social Security and Medicare tax that is withheld from your paycheck.
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