U.S. federal payroll taxes are those taxes paid for social security and Medicare. Employees and employers share these taxes, with the employer deducting the employee share (one-half the total due) from wages/salaries, and the employer paying the other half.
The employee tax rate for social security is 6.2% (amount withheld). The employer tax rate for social security is also 6.2% (12.4% total). The Social Security portion of the tax is capped each year. The employee tax rate for Medicare is 1.45% (amount withheld). The employer tax rate for Medicare tax is also 1.45% (2.9% total). There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax.
