The impact of the tax-transfer system on the distribution of income among economic units is the subject of a number of studies by the Office of Research and Statistics of the Social Security Administration. One of the most important data sources for the work is the Census Bureau's March Current Population Survey (CPS). To conduct such studies, the Office of Research and Statistics has developed a method of estimating social security tax liability for each person in the March CPS sample. This paper presents a detailed description and evaluation of the method developed, called the payroll tax algorithm or PTA. For evaluation purposes PTA results based on the March 1972 CPS are compared with agency program data. PTA estimates of taxes or contributions for the other major nationally uniform social insurance programs are also presented. (Author)