employer contribution to social security tax
In addition to the amount withheld from its employees for Social Security taxes, the employer must contribute/remit an additional amount, which is an expense for the employer. In the year 2018, the employer's portion of the Social Security tax is 6.2% of the first $128,400 of an employee's annual wages and salary. For example, if an employee earns $40,000 of wages, the entire $40,000 is subject to the Social Security tax. This means that in addition to the withholding of $2,480, the employer must also pay $2,480.