On October 16th, the Social Security Administration announced that the taxable wage base would increase from $110,100 to $113,700. This means that employees will pay the following on taxable income:
- 6.2% social security tax on taxable income up to $113,700:
- 1.45% Medicare tax (aka Hospital Insurance) for the first $200,000 of taxable income
- 2.35% Medicare tax on taxable income over $200,000
Employers who handle payroll in-house will need to be sure to adjust their employees’ paychecks accordingly.
Questions? Contact Melissa Miller, payroll specialist.