The Medicare Tax Rate of 2011
Your employer will withhold these taxes from your paychecks, as well as pay additional Social Security taxes and Medicare tax rates for you. The withholding of taxes ensures that most of your income taxes will be paid regularly, so that you do not have to pay a large amount of taxes at the end of the year. Payroll tax rates may change from time to time, and they will determine how much your take-home pay will be.
When you start working for your employer, you will be asked to fill out the W-4 form. This form is used for calculating the amounts of federal income taxes and state income taxes to be withheld from your salaries or wages. The amounts withheld differ from one individual to another. If you have dependents, you will have a reduced amount of taxes taken out of your paycheck.
The income limit for Social Security tax is $106,800; this means that if you have a higher income than $106,800 you will only be taxed on the $106,800. This limit is the same limit that was in place in 2009. At this time, there is no limit to the wages subject to the Medicare tax rates.
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