The Social Security Payroll Tax Limits
Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year.
The Social Security Wage Base (SSWB) is the maximum earned gross income on which a wage earners Social Security tax may be imposed. The Social Security tax is one part of the Federal Insurance Contributions Act tax (FICA) and Self-employment tax, the other part being the Medicare tax.
Social Security Limit 2011
When average earnings are calculated to determine a worker’s Social Security benefit, the maximum amount of covered wages are taken into account. The Social Security wage base for 2011 will remain the same as 2010 which is $106,800.
The Social Security tax rate paid by the employer is 6.20% and the employee will also pay 6.20%. The maximum Social Security tax that employees and employers will each pay in 2011 is $6,621.60.Now if you’re self-employed you will pay the entire amount of applicable tax.
2011 Social Security Payroll Tax Limit
The FICA tax can sometimes be referred to as the payroll tax or the self-employment tax depending on your employment status. This is your contribution to Social Security and Medicare as a percentage of your salary. As you know, we all have to pay in while we are working in order to collect when we are older. Hopefully the money will still be there for us.
Calculating Payroll Tax Limits
If you would like to estimate your taxes owed you can
use the free tax calculator at TurboTax Online. They have several different tax preparation software programs available.
If the percentages and fica limits have your mind swirling, the software can help you figure it all out. It doesn’t matter whether you’re an employee or self-employed. They have software packages for the self-employed and the employee.
As a matter of fact, when you start to use the software and enter information, you will be advised to switch to a different tax software choice if they determine another package would be to your benefit. So don’t worry about whether or not you chose the best tax software package.
Online Tax Preparation Software
If you would like to estimate your Social Security payroll tax you should try TurboTax Online. There are many benefits waiting for you to take advantage of. You are guaranteed the biggest refund possible or least tax owed.
You will know right where you stand. As you enter data they will display your refund (or tax owed) on every screen and it will update the amount as you answer questions.
Visit TurboTax Online today to discover all of the benefits available to you!
If you would like more information on Social Security FICA limits for 2011 you can find all of the up to date articles written by tax professionals by visiting an online tax preparation service, such as TurboTax. All you have to do is click on the support tab and enter, Social Security FICA limits for 2010 in the search box and you will have plenty of articles and information at your finger tips.
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