3 ms·

I'm curious where you got that 14% number. The source I found says 6.2% [1], and 0% after 118.5k/year in wages. [1] http://www.irs.gov/taxtopics/tc751.html htt

• lotsofpulp 11y ago
  From an employer's perspective, what an employee is paid depends on the total cost of employing that person, which includes the employer's half of the social security and Medicare tax. It's reasonable to state that also as a tax that the employee pays. From your link: The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.
  • evgen 11y ago
    It's reasonable to state that also as a tax that the employee pays. No it isn't. If your employer can spend less to employ you then they will keep the profit for themselves, not share it with you.
    • YokoZar 11y ago
      Are you being paid minimum wage? No? Then there's something you're not considering. There is at least some competition for your labor, and making it dramatically more expensive to employ you will have some effect on how much money you can get.