What is the Social Security tax rate?

The Social Security tax rate in Virginia is the same as the national rate. This rate is 12.4%, with 6.2% going toward the employee and 6.2% going toward the employer. The Social Security tax is used to fund the Social Security program, which provides benefits for retirees, certain survivors, and disabled people. The tax applies to wages and salaries up to an annual limit, which for 2020 is $137,700. Any wages and salaries earned over this limit are not subject to the 12.4% Social Security tax. The Social Security tax also applies to self-employed people in the state of Virginia. They are required to pay the full 12.4% Social Security tax on the first $137,700 of their net earnings. Self-employed people also need to pay an additional Medicare tax of 2.9% The Social Security tax rate is important to understand for both employers and employees. By understanding the rate, employers are able to accurately calculate personnel costs, while employees can plan for their retirement needs, since contributions to Social Security are used to fund retirement benefits.

Related FAQs

What is the tax rate for self-employment income?
What are the rules for filing a tax return if I’m self-employed?
What is the tax rate for dividends?
What is the tax rate for dividends?
What is the tax rate for trusts?
What are the penalties for filing taxes late?
Are there any tax credits available?
Should I file taxes jointly or separately?
What is a tax return estimate?
What is a tax haven?

What is the Social Security tax rate?

Related FAQs

Related Blog Posts