Social Security Tax

Social Security Tax is a payroll tax funding the Social Security program, with employees and employers each contributing 6.2% of wages up to a yearly cap.

1. What is Social Security tax?
   Answer: It is a payroll tax funding Social Security benefits.
   
2. What is the rate?
   Answer: It is 6.2% for employees and employers, totaling 12.4% in 2025.
   
3. What is the wage cap?
   Answer: The cap is $168,600 in 2025.
   
4. Who pays it?
   Answer: Both employees and employers pay it.
   
5. How does HR manage it?
   Answer: HR withholds and remits it to the IRS.