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.
In this example, subtract $3,700 from $4,000 to find the Social Security tax only applies to $300 of the current paycheck. 4. Multiply the amount of the paycheck affected by the Social Security tax by the current employer rate for the Social Security tax. As of 2011, the employer rate equals 6.2 percent. You can check the current rate on the Social Security Administration website. Finishing this example, multiply $300 by 0.062 to find your company must pay $18.60 on behalf of this employee for the Social Security payroll expense.