What is the employee Social Security tax rate?

The employee Social Security tax rate is set at 6.2%. This rate applies to earnings up to a certain limit, known as the Social Security Wage Base, which is adjusted annually. This tax is a critical component of the Federal Insurance Contributions Act (FICA) and is utilized to fund the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals.

Understanding this rate is essential for payroll professionals, as accurate deductions from employee paychecks are necessary for compliance with federal regulations. The Social Security tax is distinct from other deductions such as Medicare tax and income tax, each with its respective rates and purposes. It's important for payroll professionals to stay updated on these rates, particularly when changes are enacted by legislation, which can affect the amount submitted for taxation each payroll period.