Florida Building Contractor Business/Finance Practice Exam

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What is the rate for the Social Security tax withheld from employees' salaries?

4%
6.2%
8%
10%

The correct answer is: 6.2%

The rate for the Social Security tax withheld from employees' salaries is indeed 6.2%. This rate applies to wages up to a certain limit, which is known as the Social Security wage base limit, and it is designed to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers. The 6.2% rate for employees has been consistent for several years, although it is subject to change based on legislative adjustments and economic factors. Understanding this rate is crucial for contractors and business owners as it directly impacts their payroll calculations and the overall cost of employing staff.