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|Payroll Tax Rates|
|Social Security tax rate||6.20%|
|Medicare tax rate||1.45%|
|Total payroll taxes||7.65%|
If an employee earns $1,000, the payroll taxes are:
|Social Security tax||$62.00|
|Total payroll taxes||$76.50|
The employer deducts $76.50 from employee's pay and it will be sent to the federal government.
There is a maximum annual amount of Social Security tax withheld per employee. Social Security taxes are not withheld on amounts over the earnings limit. For 2014, the earnings limit was $117,000, and the maximum Social Security tax was $7,254 ($117,000 x 6.2%). There is no limit on the amount of wages subject to Medicare tax.