Taxes
Social Security tax
The 6.2 percent rate applies only up to the annual wage base.
The Formula
SS = min(Wages, Base) x 6.2%
The 6.2 percent rate applies only up to the annual wage base.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| W | Wages | currency | Gross annual wages. |
| B | Wage base | currency | Social Security wage base for the year. |
What Each Symbol Means
Wcurrency
Wages
Gross annual wages.
Bcurrency
Wage base
Social Security wage base for the year.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate social security tax page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Social Security Tax, filed under Finance. Every number the guide produces comes from substituting into this one line.