FICA / Social security

FICA

Social Security and Medicare

 

The Federal Insurance Contributions Act (FICA) tax includes two separate taxes:

a) social security tax and

b) Medicare tax.

 

Different rates apply for each of these taxes. Only the social security tax has a wage base limit. The wage base limit is the maximum wage that is subject to the tax for that year.

 

Social security tax rates and maximum wage base per year table:

Tax year

Tax rate

Maximum wage base

2009

6.2%

$106,800

2010

6.2%

$106,800

2011

4.2%

$106,800

2012

4.2%

$110,100

2013

6.2%

$113,700

2014

6.2%

$117,000

There is no wage base limit for Medicare tax. All covered wages are subject to Medicare tax.

 

Medicare tax rates per year table

Tax year

Tax rate

2009

1.45%

2010

1.45%

2011

1.45%

2012

1.45%

2013

1.45% on first $200,000

2.35% above $200,000

2014

1.45% on first $200,000

2.35% above $200,000

Self-employed FICA taxes

Tax Year

Social Security tax rate

Medicare tax rate

2009

12.4%

2.9%

2010

12.4%

2.9%

2011

8.4%

2.9%

2012

8.4%

2.9%

2013

12.4%

2.9% on first $200,000

3.8% above $200,000

2014

12.4%

2.9% on first $200,000

3.8% above $200,000

 

However, the Netherlands and the U.S. have concluded the Social Security Agreement which avoids the possibility to be insured in both countries at the same time.

 

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