The taxes imposed under this law fund Social Security (FICA) and Medicare (OASDI). The employee pays 4.2% of the first $106,800 of taxable wages for 2011. Theemployer is required to pay a 6.2% social security tax rate imposed on the employee's first $106,800 (2011) of taxable wages as well as the 1.45% Medicare tax rate imposed on all of the employee's taxable wages. No credits or withholding exemptions are permitted for the calculation of FICA taxes. When there is more than one employer, each must withhold FICA tax from the employee up to the taxable wage base.
| Medicare | ||
| Employee | 1.45% on all wages | |
| Employer | 1.45% on all wages | |
| Self Employed | 2.9% on net earnings | |
| Social Security | ||
|
Employee |
4.2% on first $106,800 of wages (2011) |
|
|
Employer |
6.2% on first $106,800 of wages (2011) |
|
|
Self employed |
10.4% on first $106,800 of net earnings (2011) |
|
