Social Security Wage-Base
The Social Security wage base will increase from $128,400 to $132,900 in 2019, higher than the $132,300 projected in the June 2018 Annual Report of The Board of Trustees.
The Medicare tax rate for 2019 remains at 1.45% of all covered earnings for employers and employees. Effective since 2013, the Additional Medicare Tax of 0.9% applies to earned income of more than $200,000 ($250,000 for married couples filing jointly). Employers withhold this tax on wages in excess of $200,000 regardless of an employee’s filing status.
Below is a comparison of the changes from 2018 -2019
|Social Security Tax Rate for Employees||6.20%||6.20%||0|
|Social Security Rate for Employers||6.20%||6.20%||0|
|Social Security Wage base||$128,400||$132,900||$4,500|
|Maximum Tax For Employers||$7,960.80||$8,239.80||$279.00|
|Maximum Tax For Employees||$7,960.80||$8,239.80||$279.00|
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.