Social Security is withheld at what rate unless a member of a retirement plan or mandatory Deferred Compensation plan (OBRA)?

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Multiple Choice

Social Security is withheld at what rate unless a member of a retirement plan or mandatory Deferred Compensation plan (OBRA)?

Social Security tax for employees is withheld at 6.2% of gross wages, up to the annual wage base. This is the standard employee rate, and the employer also contributes 6.2%. The only exception is if the employee is covered by a qualifying public retirement system or must participate in a mandatory Deferred Compensation plan under OBRA, in which case Social Security withholding may not apply. So the typical rate to remember is 6.2%. The other rates listed don’t match the official employee Social Security rate.

Social Security tax for employees is withheld at 6.2% of gross wages, up to the annual wage base. This is the standard employee rate, and the employer also contributes 6.2%. The only exception is if the employee is covered by a qualifying public retirement system or must participate in a mandatory Deferred Compensation plan under OBRA, in which case Social Security withholding may not apply. So the typical rate to remember is 6.2%. The other rates listed don’t match the official employee Social Security rate.

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