It is on total annual pay. But each employer MUST observe the max rules for their payroll.
This becomes an issue regularly when someone has 2 jobs in a year. So the max being reached is not known, nor able to be used, by the other.
However, the tax forms, and all th PC programs have a method to handle this and get the overpayment back when filing.
300000
I am 65. My full Social Security retiredment age is 66. I wnat to draw social security but am concerned that if I take SS payments and draw from my 401K that i will exceed the $14,000 + cap on annual wages. Arel draws from my 401K counted against the 14K cap ??
The Social Security tax cap for 2006 was 6.2% of the first $94,200 of wages.
The Social Security tax cap for 2001 was $80,400.
In 2012, the maximum taxable earnings for Social Security are $110,100.
106,800
1992
$106,800. Remember there is no cap on the Medicare tax.
The Social Security tax cap was last raised in 2009, increasing 4.7% from $102,000 to $106,800. It remains unchanged for 2010 and 2011.
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. For more information, click on the Related Link, below.
It's the same as the tax cap on employees. There is one slight difference: If an employee pays more than the annual cap because he had more than one job, the employee is entitled to a refund of the excess employee share withheld. The employers are not entitled to a refund.
Social Security Taxes