Question

Elizabeth works for Picasso paint supplies. Her annual salary is $72,580. What is Elizabeth’s annual social security deduction?

Answer 1

Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) tax rate for wages paid in 2018 is set by the state at 6.2 % for employees and employers, each. An individual with wages equal to or larger than $128,400 would contribute $7,960.80 to the OASDI program. Since Elizabeth receives a salary of $72,580 from Picasso paint supplies, a lot lower than $128,400, there will be no deduction.