Social Security tax is withheld from wages26 USC 3102. at a flat rate of 6.2% (4.2% for 2011 and 2012Payroll Tax Cut to Boost Take-Home Pay for Most Workers). Wages paid above a fixed amount each year by any one employee are not subject to Social Security tax. For 2015, this wage maximum is $118,500. Medicare tax of 1.45% is withheld from wages, with no maximum.26 USC 3101. (This brings the total federal payroll tax withholding to 7.65%.) Employers are required to pay an additional equal amount of Medicare taxes, and a 6.2% rate of Social Security taxes.26 USC 3111.
