Page 9 - Employment Taxes Guide

// SOCIAL SECURITY AND

MEDICARE TAXES

- An employer generally must withhold part of social security

and Medicare taxes from employees' wages and the

employer additionally pays a matching amount.

- To figure out how much tax to withhold, use the employee's

Form W-4 and the methods described in Publication 15,

Employer's Tax Guide and Publication 15-A, Employer's

Supplemental Tax Guide.

- You must deposit the taxes you withhold. See requirements

for depositing.

- The social security wage base limit is $137,700 for 2020 and

$142,800 for 2021. The employee tax rate for social security is

6.2% for both years.