5 Reasons Why the “Supercommittee” Must Consider Tax Increases

[Obama 2012 1,714]

As they do here - 7.65% Medicare and Social Security tax on every dollar earned up to $106,000.00 - after that, this rate drops to nil.

Not exactly.

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/240/~/2011-social-security-tax-rate-and-maximum-taxable-earnings

4.2% SS tax

1.45% Medicare tax

5.65% combined.

[Ban Hammer 12,867]

TY

anytime. we can't have sleeping monkeys around here!

[Mr. Big Dog 10,747]

Not exactly.

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/240/~/2011-social-security-tax-rate-and-maximum-taxable-earnings

4.2% SS tax

1.45% Medicare tax

5.65% combined.

It's called a payroll tax holiday. It expires at the end of the year after which you'll be back to 7.65%. Thanks for playing.

Edited August 4, 2011 by Mr. Big Dog

[Mr. Big Dog 10,747]

They are levied on AGI, not gross wages.

FICA Tax Rates

Generally, FICA taxes are collected at a rate of 7.65% on gross earnings - earnings before any deductions. The breakdown of FICA is 6.2% for Social Security (Old-Age, Survivors, and Disability Insurance or OASDI) and 1.45% for Medicare.

2011 FICA Tax and Social Security Limits

FICA Tax Rate = 7.65% (see note below)

Social Security Limit = $106,800

Maximum Social Security Contribution = $6,621.60 (employer) / $4485.60 (employee)

Note: In 2011, the FICA tax rate for employees was lowered to 5.65%. The employer tax rate remained unchanged, while the Social Security rate for employees was lowered to 4.20%.