What is the social security ceiling?

part of the social security is a limitation of the amount of money or earnings every year, which can remove taxes from social security. This amount climbed from year to year and it is important to realize the current ceiling to be used. Currently, the cap has climbed to a slightly over $ 100,000 US dollars (USD). Creating more than this amount is to have some income that is not subject to social security tax. This is 6.2%, and that means any salary under the ceiling is taxed in this amount. At the same time, an employer who pays employees also pays 6.2% of the total wage. Changes in social security tax are changing when people do not have employers and work as independent suppliers. They will have to pay a higher percentage because they lack employers' contributions. If one earns 200,000 USDROK and is an ordinary employee, the tax is withdrawn to the amount of the ceiling, the employer and the employee pay 6.2%. Once the cap is reached, these posts will stop. AtThus, in the middle of the year, social security taxes would no longer be withdrawn, although it is important to realize that Medicare taxes are continued to be removed from the paycheck.

Business with a social security limit is quite easy to understand whether an employee works with a single job. However, some people hold several jobs where generous amounts could be paid. Employers do not always monitor a salary that it provides to employees by other employers.

In this scenario, an employee may be more proactive in observation when the ceiling of social security is achieved. If an employee holds two separate jobs, each of whom earns $ 100,000 a year, he will have to follow the point where the revenues from both jobs have Social Security Reačepice. If it does not follow, the social security taxes will continue to be downloaded even if they servedAt the end of the year, the employee can regain these overpay taxes. It is easier to simply instruct wages departments of both companies to stop downloading this amount that they are usually willing to do, provided the employee has proof that the cap has been achieved.

For people who are freelance or independent suppliers, it is easier to find out as soon as the income hit the limit of social security. People can then stop removing money for this amount. On the other hand, it is very important that the independent supplier verifies that the correct amount has been deducted by this point. The records should be checked to find out that no social security taxes will be owed. It should be repeated that this ceiling does not apply to other types of taxes and does not change Medicare or regular income tax amounts.