On October 16, 2008 the Social Security Administration (SSA) announced the social security wage base for 2009 will be $106,800 which is an increase of $4,800 from 2008.
The social security wages % remains at 6.25%.
The maximum social security tax an employee will pay for 2009 is $6,621.60 ($106,800 x 6.25%).
As in prior years the wages subject to Medicare tax do not have a wage limit, therefore all wages are subject to the 1.45% tax.
The combined social security tax rate of 6.25% and the Medicare tax rate of 1.45% is 7.65%. The employee and employer both pay 7.65%. The total tax rate paid to SSA is 12.4% for social security (6.25% x 2) and 2.9% for Medicare (1.45% x 2).