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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 employee's paycheck, and the other portion of the Social Security tax is paid by the employer. 6.2 percent of the employee's taxable income is subject to the Social Security tax. That means that you will withhold this amount 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 payment 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 amount by 0.062, and that would give you a total of $310. Because for this year, the Social Security tax is split and is equal between the employee and the employer for a year, that means that the employer would also have to pay $310. So the total payment is $310...