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. Compute the deduction for Social Security and Medicare during the period of a year assuming a person earns $120,000.