Social Security Tax

The combined rate of Social Security and Medicare taxes is 12.4%. The Social Security tax rate is 6.2%, and the Medicare tax rate is 1.45%.

The maximum amount of wages subject to Social Security tax in 2023 is $160,200.

There is no maximum amount of wages subject to Medicare tax.

Both employees and employers are responsible for paying Social Security and Medicare taxes.

Social Security and Medicare taxes are withheld from wages through a combination of flat and progressive tax rates.

The Social Security tax rate for self-employed individuals is 15.3%.

The Medicare tax rate for self-employed individuals is 2.9%.

The due date for filing Form 1040 and paying Social Security and Medicare taxes is April 15th.

The penalty for failing to pay Social Security and Medicare taxes on time is both a fine and a prison sentence.

The Internal Revenue Service (IRS) is the federal agency responsible for administering Social Security and Medicare taxes.

Form 941 is the form used to report Social Security and Medicare taxes.

Form 843 is the form used to request a refund of Social Security and Medicare taxes.

Form 4070 is the form used to report tips.

Schedule SE is the form used to report self-employment income.

Schedule H is the form used to report household employment taxes.