What are the rates of social security taxes?

In the United States, taxpayers are obliged to pay social security taxes on the basis of their income. The percentage of income taxpayers is obliged to pay as a social security tax rate. Social security rates usually remain constant year after year, but may change. However, most employees do not have to determine the rate for which social security taxes must pay, as employers usually apply current rates and process the deduction of these taxes on employees' payments. On the other hand, self -employed individuals are responsible for calculating the required amount of taxes and their payment to the internal income service (IRS), an organization that processes federal taxes in the United States.

Social security tax rates are used to calculate the amount of money that every taxpayer must pay for social security each year. Fortunately, taxpayers and those who are responsible for wages,they do not have to guess about the payments they owe. Inspead, can refer to de facto sheets on the Social Security or IRS website, which provide current social security tax rates. Usually such graphs provide information on the maximum amount of income that can be taxed each year with social security and the rates of social security tax set for employees, employers and self -employed persons.

In most cases, an individual who is classified as an employee does not apply so much from his pocket for social security tax as the self -employed person could. This is due to the fact that social security tax rates for employees are usually much lower than the rates set for self -employed. The employee usually pays only half of the social security tax payable from his own income and his employmentThe studies correspond to this amount. On the other hand, the self -employed person must pay the entire amount of tax on social security himself. The required Contribution to the taxpayer is usually the same regardless of whether the taxpayer is an employee or self -employed individual.

In order to understand how social security tax rates are processed for employees compared to self -employed individuals, it helps to consider an example. For example, an employee may be required to pay social security taxes at 6.2 percent and his employer would have to compare this amount. This results in a total payment of 12.4 percent for this employee. On the other hand, a self -employed person would have to pay the entire amount of tax on social security. 12.4 percent would come out of the pocket of a self -employed person.