August 29,2022

By Tirupati Gumpula

Social Security and Medicare Tax Rates 2022

Taxes under FICA (Federal Insurance Contribution Act) will be levied differently.

They include old age, Survivors, and disability insurance taxes you might also call them Social security taxes.

And hospital insurance taxes also known as Medicare taxes will attract different tax rates.

In this story, you will find everything related to Social Security and Medicare tax rates for 2022. As well as the updated Wage base.

Social Security and Medicare taxes

The updated tax rate for the Social Security is 6.2% for Employer as well as employee each

or you can say 12.4% total. Whereas the medicare taxes are 1.45% for employees and 1.45% for employers or 2.9% total.

Refer to the employer's tax guide for more details.

There is also a separate guide for agriculture employees. You can refer to the below.

If you are an employer and want to know how much you can defer employee benefits. refer to the notification below.

Additional medicare taxes will be applied to your medicare wages if they cross the threshold based on your tax filing.

Additonal Medicare taxes

Employers should withhold 0.9% of the extra medicare taxes paid in excess of $200,000 in a financial year..

No need to look for their filing status. And you should continue to withhold the taxes for the amounts exceeding $200,00 in wages.

Fortunately, there is no employer match for the additional medicare taxes.

Only social security has the wage base limit. It is $147,000 as per the latest tax bracket.

social security wage base 2022

The Medicare tax has no wage base limitation. The Medicare tax applies to all covered wages.

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