SS is calculated in two parts, the amount withheld from the employee and the employer match. Both pay 6.2% of gross wages until the wage base is met. The maximum paid by both the employee and employer is now $7,886.40 ($127,200 x 6.2%) except for those who are self-employed. A self-employed individual pays both the employee and the employer portion of SS taxes. Self-employed will pay a maximum of $15,772.80 ($127,200 x 12.4%) for 2017.
Medicare remains at 1.45% of all earnings, unless the earned income is in excess of $200,000 ($250,000 if married filing jointly) when there is an increase of 0.9%.
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