Social Security Tax
Social Security tax is a payroll tax paid by both employees and employers to fund the U.S. Social Security program. This program provides monthly benefits to retirees, people with disabilities, and survivors of deceased workers.
Who is required to pay the Social Security tax?
Both employees and employers are required to pay this payroll tax. The tax is automatically withheld from employee wages, and employers are required to match the amount. Self-employed individuals pay the full combined rate themselves.
How is the social security tax calculated on employee wages?
Social security tax is calculated as a percentage of an employee’s gross wages up to a set annual limit. In 2025, the rate is 6.2% for employees, with employers contributing an additional 6.2% of the total. Self-employed individuals pay the full 12.4% on their net pay up to the wage cap.
Dive Deeper with Justworks’ Resources
Get a closer read on relevant topics related to benefits, payroll, HR, compliance, and more.
