How much of the Social Security tax is paid by employees?

The correct amount of Social Security tax that employees pay is 6.2%. This rate applies to earned income, subject to a certain wage cap, which is adjusted annually. The 6.2% tax is part of the FICA (Federal Insurance Contributions Act) tax, where both employees and employers contribute to Social Security and Medicare programs. In this case, the employee's contribution is 6.2%, while the employer matches this with an additional 6.2%, resulting in a total contribution of 12.4% for Social Security between both parties.

It's important to understand that the rate of 6.2% is set by law and has been the standard rate applicable for numerous years. While other options may seem plausible, they do not reflect the current applicable rate for Social Security tax withheld from an employee's paycheck. This distinction is vital for anyone engaged in payroll processing, personal tax calculations, or understanding their own business tax responsibilities.