Bookkeeping & Write-up

For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limitation on taxable earnings for Medicare's Hospital Insurance (HI) taxes. The Social Security tax rate for employees is 4.2 percent through the end of the year. The Social Security tax rate for employers is 6.2 percent. The Medicare tax rate is 1.45 percent for employees and employers. For Self-Employed individuals, the Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.