The Social Security payroll tax is imposed on employers and employees to gain funding for Americans under the Old-Age, Survivors, and Disability Insurance (OASDI) program as mandated by the Federal Insurance Contributions Act (FICA). The rate and payroll cap are subject to change, and certain entities are exempt from contributing to it.
The Social Security payroll tax rate for 2024 is 12.4%—and ensuring you pay the correct amount is a part of your payroll responsibilities. The tax is a levy shared equally between employers and employees, each contributing 6.2% of an employee’s gross salary up to a specific limit. In this guide, we’ll discuss its intricacies, as well as how to calculate it.
