What are the maximum taxable earnings amounts and the SocialSecurity tax rate for 2013?
When you have wages or self-employment income covered by SocialSecurity, you paySocialSecurity taxes each year up to a maximum amount set by law. For 2013, you will pay SocialSecurity taxes on income below $113,700. You must pay Medicare taxes on all income.
Also, beginning in 2013 you must pay 0.9 percent more in Medicare taxes on earned individual income of more than $200,000 ($250,000 for married couples filing jointly). The tax rates shown below do not include the 0.9 percent:
Employees — the SocialSecurity tax rate is 6.2 percent on income under $113,700 through the end of 2013. The Medicare tax rate is 1.45 percent of all income;
Employers — the SocialSecurity tax rate is 6.2 percent. The Medicate tax rate is 1.45 percent; and
Self-employed —the SocialSecurity tax rate is 12.4 percent on income under $113,700 through the end of 2013. The Medicare tax rate is 2.9 percent.