News / Article

How to Calculate Your Social Security Taxes

Source: https://fool.com/retirement/2017/03/17/how-to-calculate-your-social-security-taxes.aspx - Mar 17, 2017

Social Security taxes are calculated in a different manner than federal and state income taxes. In some ways, the process is much less complicated -- for example, there are no Social Security tax "brackets" -- just one rate. However, Social Security tax does not apply to all types of income, and is calculated differently for self-employed individuals. With that in mind, here's how you can calculate your Social Security taxes and what to do if you paid too much.
The Social Security tax rate

Here's the easy part. The Social Security tax rate in the United States is currently 12.4%, but only half of this amount is paid by employees, with the other half paid by the employer. If you're self-employed, you are considered to be both the employer and employee, so you pay the entire Social Security tax as part of your self-employment tax.

CLICK SOURCE ABOVE TO READ ENTIRE ARTICLE

Category: General Business