FEDERAL TAX TABLES FOR 2011
The Federal Government and the Obama Administration recently extended the Bush Era Tax Cut through 2012. This means that the tax rates we have had for several years remain unchanged.
SOCIAL SECURITY AND MEDICARE TAXES
For the year 2011 only, Social Security taxes have been reduced to 4.2% from 6.2%. This will increase next year to the normal rate of 6.2% The cap on taxable gross income for Social Security taxes this year is $106,800. Medicare taxes are simply 1.45% of all gross income. Your employer also must match your Social Security and Medicare taxes, meaning that they must pay too. For 2011, your employer will pay Social Security taxes at the 6.2 rate, even though you will only pay 4.2%.
If you are self employed, you must pay the match for Social Security and Medicare taxes that an employer normally would. That means that for 2010, if you are self employed, you Social Security taxes would be 10.4% of your gross income up to $106,800, and your Medicare taxes would be 2.9% of your total gross income.
Social Security and Medicare Tax Tables for 2011
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