What Percentage of Your Income Is Taken Out for Social Security in Georgia?
If you live and work in the United States, you generally pay Social Security taxes. Although the percentage figure has changed over the years, the deduction is standard throughout the country. Georgia residents pay the same percentage of their income for Social Security taxes as someone from California, Texas or any other state.
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FICA
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The Federal Insurance Contributions Act covers both Social Security and Medicare tax deductions. Passage of the act allowed the Internal Revenue Service the authority to collect taxes, originally for Social Security alone and later for Social Security and Medicare.
Employee Contribution
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As of the time of publication, Georgia employers deduct 4.2 percent from your gross pay to cover your portion of the Social Security tax obligation. The Medicare portion of FICA stands at 1.45 percent for Georgia employees. Employers deduct Social Security taxes on wages of up to $106,800, as of the time of publication. Medicare taxes are paid on all income. Percentages and maximum taxable income amounts can change by acts of Congress.
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Employer Contribution
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Employers pay 6.2 percent of their employees’ gross wages to the Internal Revenue Service to cover the employer percentage requirement for Social Security wages. Employers must also pay a 1.45 percent Medicare tax on employees’ gross wages. The $106,800 Social Security tax wage cutoff also applies to employers. Additionally, there is no wage cutoff for Medicare contributions for employers.
Self-Employment Tax
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If you are a self-employed Georgian, you must pay both the employer and the employee portions of FICA as self-employment taxes. You are required to pay 10.4 percent for Social Security and 2.9 percent for Medicare for a total of 13.3 percent in self-employment tax. You must pay the self-employment tax on your net earnings. Keep in mind that the Social Security percentage cuts off at $106,800, while the Medicare portion extends to include all earnings. You can deduct the employer portion of your self-employment taxes when figuring your adjusted gross income.
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