Calculate My Social Security And Medicare Tax

Bob s medicare taxes would be calculated as.

Calculate my social security and medicare tax. If your wages and tips are subject to either social security tax or the tier 1 part of railroad retirement tax or both and total at least 132 900 do not pay the 12 4 social security part of the se tax on any of your net earnings. In sally s example above assuming all of her wages are included for social security purposes her fica withholding for each paycheck would be 98 81. Multiply the current social security tax rate by the amount of gross wages subject to social security. Using our example numbers.

The fica tax federal insurance contribution act tax is an employee payroll tax that funds social security benefits and medicare health insurance. These calculators do not show the additional medicare tax applied to high incomes starting in 2013. For security the quick calculator does not access your earnings record. Currently receiving benefits on your own social security record.

Since 137 700 divided by 6 420 is 21 4 this threshold is reached after. The current rate for medicare is 1 45 for the employer and 1 45 for the employee or 2 9 total. 100000 5 5000 so the employee medicare tax would be 5 000 00 in this instance. The current tax rate for social security is 6 2 for the employer and 6 2 for the employee or 12 4 total.

Benefit estimates depend on your date of birth and on your earnings history. One of the differences between social security and medicare is that social security is taxed only on the first 127 200 of taxable wages or 7 886 40 in taxes. Using our example numbers. However you must pay the 2 9 medicare part of the se tax on all of your net earnings.

Different rates apply for these taxes. Your military service railroad employment or pensions earned through work for which you did not pay social security tax. They both pay 7 65 6 2 for social security and 1 45 for medicare of their income to fica the combined contribution totaling 15 3. You can use the retirement estimator if you have enough social security credits to qualify for benefits and you are not.

Employee social security i or thss whichever is lower x rss. Employee medicare i x rmed. 90000 10 9000 so the employee social security tax would be 9 000 00 in this instance. Though medicare tax is due on the entire salary only the first 137 700 is subject to the social security tax for 2020.

For 2017 there is a very large increase in the social security income limit from 118 500 to 127 200. Social security tax limit for 2017 is 7 886 40. Who can use the retirement estimator. So benefit estimates made by the quick calculator are rough.

Instead it will estimate your earnings based on information you provide.