Included as “wages” subject to this payroll tax are salary or hourly wages, commissions, payments on a piecework basis, bonuses, or other forms of compensation (such as board, lodging, or payments in kind). Premiums are capped at the Social Security Wage base, which as of 2022 is $147,000.
For example, an employee with an annual salary of $50,000 would result in an annual premium of $450 (.9% of $50,000), of which the employee and employer would each be responsible for $225. Total payment per quarter for the employee would be $56.25.