What is the Social Security tax rate and what is the maximum taxable earnings amount for Social Security in 2011?
Employee/Employer For 2011, the maximum taxable earnings amount for Social Security is $106,800. The Social Security tax (OASDI) rate for wages paid in 2011 is 4.2 percent for employees and 6.2 percent for employers. For example, an individual with wages equal to or more than $106,800 would contribute $4,485.60 to Social Security in 2011. The employer would contribute $6,621.60. For Medicare’s Hospital Insurance program, there is no limitation on taxable earnings. Tax rates under the Medicare program are 1.45 percent for employees and employers and 2.90 percent for self-employed persons. Self Employment For 2011, the maximum taxable earnings amount for Social Security is $106,800. For Medicare’s hospital insurance program, there is no limitation on taxable earnings. Tax rates under the Medicare program are 1.45 percent each for employees and employers, and 2.90 percent for self-employed persons.
