Social Security and Medicare Taxes
There have been many mistakes by employers when it comes to deducting Social Security and Medicare Taxes (too much or too little being withheld). It usually goes unnoticed until tax time, when the year totals are shown on your W-2s or 1099s.
The amounts should be 6.2% for social security tax (old-age, survivors, and disability insurance) and
1.45% for Medicare tax (hospital insurance).
Double check your pay stub to ensure it is being reported correctly.
Wage limits. For social security tax, the maximum amount for tax year 2009 wages subject to the tax has increased from $102,000 to $106,800. For Medicare tax, all covered 2009 wages are subject to the tax.