How Is Social Security Tax Calculated?

·10 min read
How Is Social Security Tax Calculated?

The Old-Age, Survivors and Disability Insurance program (OASDI) tax—more commonly called the Social Security tax—is calculated by taking a set percentage of your income from each paycheck. For both 2021 and 2022, the Social Security tax rate for employees and employers is 6.2% of employee compensation, for a total of 12.4%. The combined taxes withheld for Social Security and Medicare are referred to as the Federal Insurance Contributions Act (FICA).