Back to the blog

What is the Social Security tax rate for 2011?

The employee's portion of the Social Security tax, which is withheld from employees' salary and wages during 2011, will be 4.2% of the first $106,800 of each employee's taxable earnings. This rate is 2% lower than the 2010 rate of 6.2%. Employee earnings earnings in excess of $106,800 are not subject to the Social Security tax.

The employer's portion of the Social Security tax in 2011 remains at 6.2% of each employee's first $106,800 of taxable earnings. There is no employer Social Security tax on any employee's earnings above $106,800 during 2011.

In addition to the Social Security tax, the employee must have withholdings for a Medicare tax of 1.45% of every dollar of salary or wages - there is no limit. The employer must also pay a Medicare tax of 1.45% on every dollar of every employee's salary or wages.

Self-employed individuals are responsible for paying both the employee and the employer portions of the Social Security tax and the Medicare tax.