Video instructions and help with filling out and completing Will Form 944 Pr Withholding

Instructions and Help about Will Form 944 Pr Withholding

I welcome the easy payroll guy my name is Karen Hutchinson and in this video I'm going to be talking about how to calculate Social Security taxes the Social Security tax is a tax that is paid by both the employee and the employer this means that a portion of the tax is withheld from the employees paycheck and the other portion of the Social Security tax is paid by the employer 6.2 percent of the employees taxable income is subject to the Social Security tax that means that you will withhold this amounts from their paycheck and pay it to the IRS on their behalf you will remove these payments either on a monthly or semi weekly basis depending on your particular pay schedule your company is also responsible for half of the Social Security payment that means that you are responsible for the other 6.2 percent the total Social Security payments is twelve point four percent and that is split between the employer and the employee you can calculate the Social Security tax by using these percentages so let's say that you have an employee who has taxable wages of $5,000 for the month you would calculate the Social Security tax as follows you can calculate it and break it down by employee and employer or you can just find the total payment that is due the employee portion is 6.2 percent of the gross taxable wages so assuming that all $5,000 is taxable you would multiply that amounts by point zero six two and that would give you a total of $310 because for this year the the Social Security tax is split and is equal between the employee and the for a year that means that the employer would also have to pay $310 so the total payment is three hundred and ten times two which is six hundred twenty dollars you can also arrive at this amount by taking five thousand and multiplying it by 0.12 four which is twelve point four percent and you would still end up with the six hundred twenty dollars so when you pay you were nine forty one payment through EFTPS you would remit your payment for six hundred twenty dollars because you'll be paying the employee portion that you withheld from their paycheck and the portion that you owe as well so you will pay them together so this is pretty easy to calculate again it's twelve point four percent total six point two percent from the employee and six point two percent from the employer there is a maximum wage limit for Social Security taxes the Social Security tax is only taxed on the first one hundred seventeen thousand dollars this has gone up from the year 2021 when it was one hundred thirteen thousand dollars seven hundred dollars I $113,700 so this means that you will tax Social Security on the first one hundred seventeen thousand dollars if your employee makes more than one hundred seventeen thousand dollars and the additional will not be taxed for social security purposes now there are a few types of payment that are exempt from Social Security and Medicare wages so what you would need to do is to go to publication fifteen take a look at pages 36 through 40 to determine if any of the compensation that you've paid to your employee is not exempt from Social Security and most wages are but there are a few that aren't so you might want to check that out I hope has helped you to calculate Social Security taxes thank you for visiting ez payroll guy.

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