Each year, the government bumps up the maximum social security taxes that you can pay. According to the Social Security Administration (www.ssa.gov), the maximum wage base for 2006 is $94,200, an increase of $4,200 from the 2005 max of $90,000.
At a rate of 6.2%, the maximum social security taxes that your employer will withhold from your salary increases by $260.40, from $5,580.00 in 2005 to $5,840.40 in 2006.
In addition, your employer also withholds Medicare taxes from your pay at a rate of 1.45%. There is no limit on your wages subject to this tax.
