Giving students an environment where they can explore learning in new and innovative ways is an exciting part of our future. But the main focus of this vision is that kids do matter...all children, everyone of them has the ability and opportunity to learn. We provide that in the Madison schools and look forward to a great future of success.
Image source: Getty Images. Social Security tax is one part of the Federal Insurance Contribution Act (FICA) tax, and it is assessed at a rate of 12.4%. This is split evenly between the employee and employer, and it applies to earned income up to $118,500 for 2016 -- resulting in a maximum Social Security tax of $14,694. The remainder of FICA tax goes to Medicare.
Until now, the Social Security wage base has increased in each of the last four years. Social security taxes, (or OASDI taxes) are the taxes that are taken from your paycheck to contribute to the social security program. However, there is a wage base limit, and earnings above this amount are not taxed. The social security tax wage bases are per person, and are not impacted by a husband and wife who meet the wage base when adding their incomes together. Any earnings over the tax wage base are not subject to social security taxes.