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For 2011, the maximum limit on earnings for withholding of Social Security (old age, disability, and survivors insurance) is $106,800.00. This is unchanged from last year. However, due to the passing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Social Security tax rate has been reduced in 2011 from 6.2 percent to 4.2 percent, resulting in a maximum Social Security tax of $4,485.60.
There is still no limit on the amount of earnings subject to Medicare (hospital insurance). The Medicare tax rate applies to all taxable wages, and remains at 1.45 percent. The FICA tax rate, which is the combined Social Security rate of 4.2 percent and the Medicare rate of 1.45 percent, has changed from 7.65 percent to 5.65 percent for 2011.
The information included in the following table reflects the change in the Social Security Liability Limit effective January 1, 2011.
— Payroll,
Controller, 1-13-11
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