Social Security (OASDI).

Glossary \ Payroll Terms

Published On: Thursday July 23, 2020 04:29 AM

Social Security is both an employee withholding tax and an employer payroll tax. The employer is responsible for remitting a total of 12.4% of an employee's taxable earnings to the IRS. They are permitted to take 6.2% from the employee as a withholding tax and "match" the other 6.2% as a payroll tax. There is a wage base limit, which means that the tax stops at a certain amount of wages for the year. This varies per year. In 2019, the wage base limit was $137,700, this is the same for 2020.

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