Social Security Wage Base Increases for 2019

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Prepared by Danielle Williams– Staff Accountant

Previously the maximum earnings subject to the Social Security (SS) portion of FICA was $128,400. Meaning that in 2018 and before both employers and employees each only paid a maximum of $7,960.80 ($128,400 x 6.2%) and for those self-employed a maximum of $15,921.60 ($128,400 x 12.4%) in SS tax.

For 2019, the Social Security Administration (SSA) announced an increase in the maximum earnings subject to SS tax to $132,900. This means that for 2019, the maximum Social Security tax that employers and employees will each pay is $8,239.80 ($132,900 x 6.2%). A self-employed person with at least $132,900 in net self-employment earnings will pay $16,479.60 ($132,900 x 12.4%) for the Social Security part of the self-employment tax.

The Medicare component of FICA remains 1.45% of all earnings, and individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly, $125,000 for married filing separately) will pay an additional 0.9% in Medicare taxes.

Please visit the Social Security Administration website for additional details.

If you have any questions, please contact your HAC Tax Advisor.

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