Madison school district enjoys budgetary success. Near the start of the 2010s, Madison District Public Schools moved out of deficit, bringing its expenditures in line with its revenues. Since then, the district has continued to improve its financial picture by leaps and bounds.
The Social Security tax rate is assessed on all types of income earned by an employee including salaries, wages, and bonuses. However, there is an income limit to which the tax rate is applied. For 2017, the Social Security tax is taken from income up to an annual limit of $127,200. Any amount earned above $127,200 is Social Security tax-free.
If your wages are more than $127,200 in 2017, use this figureâ$127,200âtimes 6.2 percent to arrive at the amount you and your employer must each pay. Anything you earn over this threshold is Social Security taxâfree. What Is the Social Security Tax For? Unlike income taxes, which are paid into the general fund of the United States and can be used for any purpose, Social Security taxes are paid into special trust funds that can only be used to pay for current and future Social Security retirement benefits, as well as disability benefits and benefits for widows and widowers.