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2012 Social Security Wage Base

Posted by Mike C Posted on Nov 02 2011

Get ready to pay more employment taxes!!

The social security wage base will increase from $106,800 in 2011 to $110,100 in 2012. The increase in wage base will increase the employment taxes $409.20.

As in prior years, there is no limit to the wages subject to the Medicare tax, so all covered wages are subject to the 1.45% tax. The FICA tax rate, which is the combined social security tax rate of 6.2% (4.2% on the employee portion in 2011) and the Medicare tax rate of 1.45%, is normally 7.65%, while the self-employment tax rate is normally 15.3% (13.3% in 2011). The threshold for coverage for domestic employees will be $1,800 in 2012.