Payroll Tax Rates

Payroll Tax Rates are the percentages applied to employee wages for taxes like Social Security and Medicare, set by federal and state governments, affecting net pay.

1. What are payroll tax rates?
   Answer: They are percentages applied to wages for taxes like Social Security.
   
2. What are the current rates?
   Answer: As of 2025, Social Security is 6.2% and Medicare 1.45% per party.
   
3. Are there limits?
   Answer: Social Security has a wage cap (e.g., $168,600 in 2025); Medicare does not.
   
4. Who pays them?
   Answer: Both employees and employers share the cost.
   
5. How does HR manage them?
   Answer: HR applies rates and remits taxes to authorities.