The Social Security Payroll Tax Cap: Everything You Need to Know
Everyone who works and earns pays Social Security tax out of their earnings, up to a certain annual earnings limit known as the “payroll tax cap.” This year, the tax cap is $142,800 and employees and employers each pay 6.2% of the employee’s earnings up to that cap to Social Security. The tax cap amount goes up a bit each year with changes to the national average wage index. All who work and earn also pay a portion of their earnings to help fund Medicare, but the percentage of earnings is smaller and there is no earnings limit for the Medicare tax. This article by Emily Brandon appearing at U.S. News & World Report reveals pretty much everything you need to know about the Social Security (and Medicare) taxes you pay from your earnings. Click here to read more.