The Christmas Cove Dyke of coastal Maine, USA, and regional sources ... by McHone, J. Gregory; Hussey, Arthur M., II; West, David P., Jr.; Bailey, David G. / Atlantic Geology.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year. Determine the amount of withholding for social security and Medicare taxes by multiplying each payment by the employee tax rate. There are no withholding allowances for social security and Medicare taxes.
Social Security. Social Security taxes are another U.S. payroll tax deduction. Under the authority of the Federal Insurance Contributions Act (FICA), these payroll taxes are collected to fund Social Security initiatives, including retirement and disability programs. The Social Security tax rate is 4.2 percent of an employee's wages for 2011.