What is the Social Security Tax Rate for 2011?

Every employer wants to know what the Social Security tax rate is. The Social Security tax rate is 6.2% up to $106,800. So what does that mean for you as an employer?

Well, it means there is a limit to the Social Security tax. Once you have paid for the Social Security tax for an employee who has made $106,800 from you, then you no longer have to pay Social Security tax for that employee for that calendar year. Ah, isn’t that good news? There really is a limit to taxation.

Please don’t tell me you’re still using a calculator to compute taxation for your employees. I certainly have good news for you as an employer. QuickBooks is here to the rescue! Are you spending way too much time doing your own accounting the old fashioned way? Tax software for business owners is here to the rescue!

Social Security and Medicare Taxes for Employees

If you want the quick and easy way to compute taxation for your employees, then I have the answers for you. QuickBooks is a tax software program for the business owner. Wouldn’t you just love to pop in some names and numbers and know exactly what to pay into the Feds for taxes? It really can be that easy. If you think about how amazing computers are at math, then it’s no surprise how amazing computers can be at calculating Social Security tax for employees. Do you know the quadratic formula?

The computer knows the quadratic formula is; x = - b plus or minus the square root of b squared, minus 4ac over 2a, do you know the formula?

What I’m trying to convey is the fact of the amazing power of computers with their math calculations. When it comes to the Social Security tax rate, it’s really just a math formula with some factors, such as, filing status, age, income, and of course, the Social Security income tax limit which we already defined as $106,800.

Employers Paying Social Security Taxes for Employees

You do have to pay up to $106,800 for each employee, but wait; there are certain situations in which you will not have to pay. You can research IRS Publication 15 or you could tap into the super power of computers and business accounting tax software to do the work for you. It’s up to you how you will spend your time and time is money. Visit QuickBooks Payroll today to see how you can benefit from using their business payroll software for computing Social Security income tax rates.