Quickbooks, Bookkeeping and Accounting Blog

The maximum amount of wages subject to social security taxes increased from $97,500 in 2007 to $102,000 in 2008, and is expected to increase to $106,500 in 2009. Here is a look at the maximum wages subject to social security taxes over the last 10 years:

• 1999: $72,600
• 2000: $76,200
• 2001: $80,400
• 2002: $84,900
• 2003: $87,000
• 2004: $87,900
• 2005: $90,000
• 2006: $94,200
• 2007: $97,500
• 2008: $102,000
• 2009 (projected): $106,500

The tax rates are 6.2% for FICA and 1.45% for Medicare, and there is no limit on the amount of wages which are subject to the Medicare tax.