What portion of Social Security taxes do employers contribute?

Study for the Social Security Taxes Test. Prepare with questions and detailed explanations to understand the principles effectively. Get ready for your exam!

Employers contribute 6.2% of their employees' earnings toward Social Security taxes, matching the employee contribution of the same percentage. This contribution is part of the Federal Insurance Contributions Act (FICA), which funds Social Security benefits, including retirement, disability, and survivors’ benefits. The total FICA tax rate is 7.65%, which includes both the 6.2% for Social Security and an additional 1.45% for Medicare. Since the contribution towards Social Security specifically is set at 6.2%, it reflects the current statutory rate mandated for employers as part of their obligations to fund the Social Security program. Understanding this is essential for both employers in calculating payroll taxes and employees in recognizing their contributions toward future benefits.

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