2016 Social Security (Payroll) Tax Calculator
Pay roles taxes have not increased from 2015 to 2016.
Social Security and Medicare taxes are mandated in the Federal Insurance Contributions Act (FICA). Calculating Social Security tax is free and easy. Use our Social Security and Medicare Tax calculator below to see how much you are paying.
Our calculator uses the latest and most accurate tax rates information from the federal government and takes into account the latest law changes including the new Additional Medicare Tax which is mandated by the Affordable Care Act, also known as Obamacare.
The Social Security and Medicare Taxes are paid in addition to state and local payroll tax as well as federal, state and local income tax.
Here is how your Social Security and Medicare taxes are calculated:
- There is a deductible half of the Social Security Tax and a non-deductible half.
- Deductible portion is 6.2% of up to $118,500 plus 1.45% for all earnings. This part is paid by the employer if not self-employed.
- Subtract the deductible portion from the total earnings.
- Employee pays 6.2% of up to $117,000 plus 1.45% of all earnings less the deducted part.
- The Affordable Care Act instituted an additional Medicare tax on high wage earners. For every dollar earned above a threshold you pay an additional 0.9% Medicare tax. The threshold is based on your filing status.