2012 Social Security tax rate and maximum taxable earnings
Employee/Employer
For 2012, the maximum taxable earnings amount for Social Security is $110,100. Currently, the Social Security tax (OASDI) rate for wages paid in 2012 is 4.2 percent for employees and 6.2 percent for employers. For example, an individual with wages equal to or more than $110,100 would contribute $4,624.20 to Social Security in 2012. The employer would contribute $6,826.20.
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 2012, the maximum taxable earnings amount for Social Security is $110,100.
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.
