consulting and training) under the same contract for the purposes of customizing the. product, or product roll-out and implementation, the agency may be able to purchase. those services up to 20% of the value of the product and first year's maintenance.
The Social Security tax is a flat tax rate of 6.2 percent on your wage income up to $118,500 as of 2017. Any wages you earn over $118,500 aren't subject to the Social Security tax, so the figure shown in Box 4 should be no more than $7,347.00, the $118,500 maximum wage base times 6.2 percent.
The Social Security tax (also called OASDI) is subject to a dollar limit, which is adjusted annually for inflation. However, there is no annual dollar limit for the 1.45 percent Medicare tax. Unlike the other FICA taxes, the 0.9 percent Medicare surtax is not withheld unless wages paid to an employee exceed $200,000. Social Security wage cap. For 2013, your obligation to withhold and to pay the Social Security tax for an employee ends once you've paid that employee total wages of $113,700.