what is the threshold of social security taxes
Earnings above this amount are not subject to the Social Seucrity portion of the payroll tax or used to calculate retirement payouts. Social Security is financed by a 12.4 percent tax on wages up to the annual threshold, with half (6.2 percent) paid by workers and the other half paid by employers. This taxable wage base usually goes up each yearâit rose from $117,000 in 2014 to $118,500 in 2015.