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Ilikepurple

(662 posts)

23. Yes. Employers' share of FICA is just another component of labor cost.

Wed Mar 25, 2026, 04:19 PM

Wednesday

The corporation’s portion of FICA, Medicare, unemployment taxes, and L&I are all part of labor cost. They are all taken into consideration when trying to hit labor cost targets. In some sense, although paid by the employer, it is part of the employees wage. Thinking that corporations absorb the cost is like thinking they’ll absorb tariff costs. Maybe a bit but only to the extent the markets force their hands.

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erronis

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MURRAY: Is it true that people making under $184k pay a 12.4% Social Security tax rate? [View all] LiberalArkie Wednesday OP

this is correct Henry203 Wednesday #1

It is correct that there is a cap. Ms. Toad Wednesday #4

Yeah, but the billionaire creates jobs, don't he? 3Hotdogs Wednesday #28

There was a arithmetic error in calculating the "billionaire" percentage Ilikepurple Wednesday #29

It is fundamentally wrong to describe the relative burden on the taxpayer as 12.4%, when it isn't. Ms. Toad Wednesday #30

Slightly Misleading ProfessorGAC Wednesday #2

I believe they are referring to a self employed worker, much like the billionaires are. LiberalArkie Wednesday #7

That May Be ProfessorGAC Wednesday #9

Nope. The percentage for a self-employed worker is 11.45. Ms. Toad Wednesday #32

It's the assumption in the wording. haele Wednesday #12

And the employer may reduce the wages in order to cover his/her half of the FICA. erronis Wednesday #13

Yes. Employers' share of FICA is just another component of labor cost. Ilikepurple Wednesday #23

Certainly Possible ProfessorGAC Wednesday #24

15.3% for most of my adult life as a self employed person. progressoid Wednesday #20

Not accurate in the details (albeit generally accurate in broad strokes). Ms. Toad Wednesday #3

What is a self-employed person pay? 12.4% LiberalArkie Wednesday #8

If I am not mistaken a self-employed person pays 12.4% payroll tax; state of stupid Wednesday #17

Maybe so, I had to always pay the full amount. But that is what Murray was referring to when they said 12.4% LiberalArkie Wednesday #26

15.3% - 12.4% for Social Security and 2.9% for Medicare progressoid Wednesday #21

Nope. 11.4514%. Ms. Toad Wednesday #33

I agree with your distinction of a "billionnaire" (wealth) vs. income (wages, taxable gains, etc.) erronis Wednesday #14

We do our best to fluff the rich and trivialize financial disparity Torchlight Wednesday #5

Benefits are also capped Dave says Wednesday #6

Same Page, Except... ProfessorGAC Wednesday #10

I'd treat dividends the same as earned income Dave says Wednesday #18

I Buy That To A Degree ProfessorGAC Wednesday #25

They could uncap the tax until the funds had a 75 year balance. Captain Zero Wednesday #11

That's a thought. Dave says Wednesday #19

If the cap is raised, then the benefits should also be increased MichMan Wednesday #37

I already pointed that out Dave says Wednesday #39

Double it for those making over $180,000.00 multigraincracker Wednesday #15

For 2026 Social Security wages are capped at $184,500 and it rises just about every year ... aggiesal Wednesday #16

I don't understand the reasoning behind creating a donut hole MichMan Wednesday #38

I was slow to realize tax code favors wealth hibbing Wednesday #22

And if you have your own business or are a 1099 contractor, double that rate! SheltieLover Wednesday #27

No. The rate cited IS the rate for self-employed individuals (after reducing their income to 92.35%) Ms. Toad Wednesday #35

Yes, 12 percent taken out dlilafae Wednesday #31

No. 6.2% is taken out for social security. n/t Ms. Toad Wednesday #34

WTF it is going broke time to tax the rich accordingly..... Historic NY Wednesday #36