I need help on how to figure out what is the tax rate for 5.8% on 107,700.00 for social security
Multiplhy $107,700,000 by 0.056. That will be the maximum employee deduction for that year.
To determine the social security tax rate on a given income, you can follow the steps below:
1. Identify the social security tax rate: The social security tax rate is fixed at 6.2% for both employees and employers. However, there is a limit on the amount of income subject to social security tax. For the year 2021, the maximum taxable earnings for social security is $142,800.
2. Determine if the income exceeds the social security taxable limit: In this case, the income is $107,700, which is below the taxable limit of $142,800. Therefore, the entire income is subject to social security tax.
3. Calculate the social security tax amount: Multiply the taxable income by the social security tax rate.
Social security tax = Taxable income * Social security tax rate
In this case,
Social security tax = $107,700 * 6.2%
To calculate this, you can convert the percentage to decimal form by dividing it by 100:
Social security tax = $107,700 * 0.062
= $6,679.40
Therefore, the social security tax for an income of $107,700.00 at a rate of 6.2% is $6,679.40.