Determine your gross wages or self-employment income subject to Social Security tax
Check the annual Social Security wage base limit for the tax year
Use the lesser of your wages or the wage base limit
Multiply that amount by the Social Security tax rate
For employees, use the employee rate of 6.2%
For employers, use the employer rate of 6.2%
For self-employed individuals, use the combined rate of 12.4%
Subtract any wages above the wage base limit from the calculation
For self-employment, apply the tax to 92.35% of net earnings before multiplying by 12.4%
Confirm the result with IRS payroll or self-employment tax rules for the correct tax year