Social Security and Medicare The required deduction for Social Security is 6,2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $117,000 and 1.45% HI (Hospital Insurance, commonly known as "Medicare") for all earnings. Refer to the above Social Security and Medicare information. Employers are required to match the employee's deductions and send the total to the IRS. Compute the deduction for Social Security and Medicare during the period of a year assuming a person earns $120.000.