The amount of social security and Medicare tax withheld from your pay appears in Boxes 4 and 6 of IRS Form W-2. There is a maximum amount of wages subject to social security tax. For 2011 and 2012, the social security tax for employees was reduced by 2 percent. The 2 percent reduction expired at the end of 2012, and was not renewed for 2013.

2012 Changes

The maximum amount of wages subject to the social security tax (4.2 percent) for 2012 is $110,100. There is no limit on the amount of wages subject to the Medicare tax (1.45 percent).

2013 Changes

The maximum amount of wages subject to the social security tax (6.2 percent) for 2013 is $113,700. There is no limit on the amount of wages subject to the Medicare tax (1.45 percent).

Additional Information:


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