ho pays the social security tax?

作者：INSURANC… 文章来源：LEGAL 点击数：更新时间：2007-5-18

f you work for an employer, 6.2% of your wages is withheld and your employer deposits the withholding, along with its 6.2% matching contribution, with the government for the social security programs. In 2007, the employee tax and matching contribution stop after the first $97,500 of wages. In addition if you work for an employer, 1.45% of your wages is withheld and the employer makes a matching 1.45% contribution to the Medicare program, making the total withholdings at 7.65% (6.2% OASDI and 1.45% Medicare). However, all wages are subject to the Medicare tax; there is no ceiling.

If you are self-employed, you pay 15.3% of your taxable income into the social security and Medicare programs, up to the first $97,500 of income. You continue to pay 2.9% of your taxable income into the Medicare program for your earnings above $97,500. Although the impact on you is greater because you pay twice the rate of employees, you can deduct half of your federal self-employment taxes from your income when it comes time to pay your federal income tax.