Social Security and Medicare Tax Rates

By | April 23, 2014

The tax under the Federal Social security taxes (or FICA) includes two separate taxes. One is the social security tax and other tax is Medicare . Each of these has different tax rates.


What are current social security and medicare rates?

The current rate of social security tax is 6.2% for the employer and 6.2% for the employee, or a total of 12.4%. The current rate of Medicare is 1.45% for the employer and 1.45% for the employee, or a total of 2.9%. See Circular E to Publication 15 , Employer’s Tax Guide (tax guide for employers), which contains more information or to agricultural employers, see Publication 51 , ​​Agricultural Employer’s Tax Guide, (Tax Guide for the agricultural employer).

Only the social security tax has a wage base limit. The wage base limit is the maximum wage that is subject to tax for that year. For entries in 2014, this base is $ 117,000. See “What’s New” in Publication 15 , which contains the current salary limit for social security purposes or for agricultural employers, see Publication 51.

There is no limit on the wage tax base of Medicare ; all covered wages are subject to withholding tax, Medicare .


Extra Medicare Tax

As of January 1, 2013, the health care laws applies an additional Medicare tax on wages of an individual subject to Medicare that exceed a threshold amount based on the marital status of the taxpayer for the tax returns. Employers are responsible for withholding the additional Medicare tax of 0.9% of wages that are paid to an individual and that exceed $ 200,000 in a calendar year, regardless of their marital status for tax returns.


Social Security and Medicare Tax Rates

It requires the employer starts to retain the additional tax Medicare billing period that you pay an employee wages in excess of $ 200,000 and continue holding it in each billing period until the end of the calendar year. No equivalent amount from the employer to the additional Medicare tax is needed. For more information on the additional Medicare tax, see our Health Care Law Tax Section.