Crucially, this need not be, and should not be, a matter of raising taxes in the aggregate. The proceeds from a gasoline tax ought to be used to finance cuts in other taxesâthis, surely, is the way to present them to a sceptical electorate.
Social Security and Medicare Withholding Rates. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.
3. Multiply the employee rate by the employee's wages to find the amount the company must withhold from the employee's paycheck for Social Security taxes. For example, if the employee's monthly pay equals $3,170, multiply $3,710 by 0.042 to find the company must withhold $133.14 for Social Security taxes. 4. Multiply the employer rate by the employee's pay to find the amount the company must pay to the government in employer Social Security taxes because of the payment to the employee. In this example, multiply 0.062 by $3,170 to find the company has to pay $196.54 in employer Social Security taxes.