SamS1
Expert Alumni

Retirement tax questions

Your Tier 1 taxes should 7.65% of your compensation,  The maximum wages Social Security tax portion (6.2%) is 137,700.  There is no maximum on the Medicare portion (1.45%).  The Tier II tax is 4.9% with maximum wage amount of 102,300.  You might be able to back into the amount of your taxable compensation by using the Tier I percentages.  From there you can look reported wages on your W-2 and box 12 and box 14 come to a total that will equal the calculated amount.  The only variable would be if your compensation is over 137,700.  Otherwise you can divide your Tier I taxes by 7.65% to get to your taxable compensation amount then go from there.