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 2009 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.

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