Your estimated Social Security tax will appear here.
Understanding Social Security Tax
Social Security tax, often referred to as FICA (Federal Insurance Contributions Act) tax, is a U.S. federal payroll tax. It funds Social Security and Medicare benefits. For Social Security specifically, this tax is levied on earnings up to a certain annual limit, known as the "Social Security Wage Base Limit." This limit is adjusted annually by the Social Security Administration to account for inflation.
How it Works:
Tax Rate: The Social Security tax rate for employees is 6.2% of their taxable earnings.
Wage Base Limit: This tax is only applied to earnings up to the Social Security Wage Base Limit for the year. Any income earned above this limit is not subject to Social Security tax.
Employer Contribution: Employers also contribute an equal amount, 6.2%, on behalf of their employees, bringing the total Social Security tax contribution to 12.4% (6.2% employee + 6.2% employer). This calculator focuses solely on the employee's portion.
Calculation Formula:
The Social Security tax for an individual is calculated as follows:
Taxable Earnings = MIN(Annual Income, Social Security Wage Base Limit)
Social Security Tax (Employee) = Taxable Earnings * 6.2%
Example:
Let's say your annual income is $80,000 and the Social Security Wage Base Limit for the year is $168,600.
Your Taxable Earnings would be the lesser of $80,000 and $168,600, which is $80,000.
Your Social Security tax would be $80,000 * 0.062 = $4,960.
Now, consider an annual income of $200,000 with the same Wage Base Limit of $168,600.
Your Taxable Earnings would be the lesser of $200,000 and $168,600, which is $168,600.
Your Social Security tax would be $168,600 * 0.062 = $10,453.20.
This calculator helps you estimate your contribution based on your income and the current wage base limit.
Note: This calculation is for the Social Security portion of FICA taxes only. It does not include Medicare tax, which has a different rate and no wage base limit.
var SOCIAL_SECURITY_RATE = 0.062; // 6.2%
function calculateSocialSecurityTax() {
var annualIncomeInput = document.getElementById("annualIncome");
var socialSecurityLimitInput = document.getElementById("socialSecurityLimit");
var resultDisplay = document.getElementById("result");
var annualIncome = parseFloat(annualIncomeInput.value);
var socialSecurityLimit = parseFloat(socialSecurityLimitInput.value);
// Clear previous error messages
resultDisplay.style.backgroundColor = "#28a745"; // Reset to success green
resultDisplay.style.color = "white";
// Input validation
if (isNaN(annualIncome) || annualIncome < 0) {
resultDisplay.innerHTML = "Please enter a valid annual income.";
resultDisplay.style.backgroundColor = "#dc3545"; // Error red
resultDisplay.style.color = "white";
return;
}
if (isNaN(socialSecurityLimit) || socialSecurityLimit < 0) {
resultDisplay.innerHTML = "Please enter a valid Social Security wage base limit.";
resultDisplay.style.backgroundColor = "#dc3545"; // Error red
resultDisplay.style.color = "white";
return;
}
var taxableEarnings = Math.min(annualIncome, socialSecurityLimit);
var socialSecurityTax = taxableEarnings * SOCIAL_SECURITY_RATE;
// Format the output to two decimal places for currency
var formattedTax = socialSecurityTax.toFixed(2);
resultDisplay.innerHTML = "Estimated Employee Social Security Tax: $" + formattedTax;
resultDisplay.style.backgroundColor = "#28a745"; // Success green
resultDisplay.style.color = "white";
}