The employee's FICA tax rate for 2012 consists of 1) the Social Security tax rate of 4.2% of the first $110,100 of wages, salaries, etc., and 2) the Medicare tax of 1.45% of all wages, salaries, etc. In other words, the employee's FICA tax rate for the year 2012 is 5.65% of the first $110,100 of wages, salaries, etc. and then 1.45% of the wages, salaries, etc. above $110,100.
The employee's Social Security tax rate of 4.2% for the years 2012 and 2011 is two percentage points lower than the customary 6.2%.
In addition to the employee's FICA tax, there is also an employer's FICA tax. However, the employer's FICA tax rate was not reduced for the years 2012 or 2011.
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