Social Security

In 2013 wages up to $113,700 are subject to social security tax and the maximum social security withholding would be $7049.40. Employers should withhold Social Security taxes (6.2 percent) from employee's wages up to $113,700 and withhold Medicare tax (1.45 percent) on all wages. In 2012 wages up to $110,100 are subject to social security tax and the maximum social security withholding would be $6826.20. Employers should withhold Social Security taxes (4.2 percent) from employee's wages up to $110,100 and withhold Medicare tax (1.45 percent) on all wages.