Social security contributions continue each working year, and do not stop at some lifetime limit.
For example, the lifetime accumulated maximum someone has paid if working since 1963 would be $123K. That would require the person makes at least the maximum taxed income each year, which was $109,000 for 2009.
Source documentation may be found at http://www.ssa.gov/history/pdf/t2a3.pdf
For 2008, the maximum social security tax withholding for an individual is $6,324, the tax on $102,000. For 2009, the maximum social security tax withholding for an individual is $6,622, the tax on $106,800.
Social Security (FICA) taxes are withheld from your gross (before tax) salary.
Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) contributions are withheld from wages up to $106,800 in 2009.
w-2
The W-2 wage and tax statement that the employer is required to send to the taxpayer before the end of January of the next year after the tax year.Box 4 is Social Security tax withheld, and Box 6is Medicare tax withheld.
Health care
When you have one employer the amount of FICA ((OASDI) Old Age Survivor and Disability Insurance) for your social security would stop once your wages with the withheld social security amount reach 106800 and social security amount withheld would be 6621.60
When you have one employer the amount of FICA for your social security would stop once your wages with the withheld social security amount reach 106800 and social security amount withheld would be 6621.60 If you have more than one employer and your combined wages reported on your W-2 are more than the 106800 amount and your the withheld social security amount is more than the 6621.60 then you would get a tax credit for the amount that is over the 6621.60 on your federal income tax return.
No. No. No. That's really the only explanation needed on this one.
The 2010 cap is the same as in 2009, $106,800.00, at which point the Social Security amount withheld would be $6,621.60 (6.2%). There is no cap on the Medicare insurance contribution, so the 1.45% amount will continue to be withheld on all earnings, and will be matched by your employer at the 1.45% rate for a total 3.90% for the year.
=== === The maximum amount of wages subject to Social Security tax for 2008 is $102,000. There is no limit on the amount of wages subject to Medicare tax.
Income tax is a tax paid on earnings from employment, investments, or other sources of income, and is used to fund government operations. Social Security tax is specifically used to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors of deceased workers. While income tax is based on overall income, Social Security tax is specifically withheld from wages to fund the Social Security program.