Tax

2019 FICA Increase

The Social Security wage base has increased from $128,400 to $132,900 in 2019, which increased the maximum individual contribution by $279.

The Medicare tax rate for 2019 remains at 1.45% of all covered earnings for employers and employees.
The Additional Medicare Tax of 0.9% applies to earned income of more than $200,000 ($250,000 for married couples filing joint).
Employers are required to withhold the additional 0.9% on covered wages in excess of $200,000, but there is
no employer matching contribution.

2018 vs. 2019
Social Security and Medicare Contributions

DESCRIPTION	2018	2019	INCREASE
Social security tax rate for employers	6.20%	6.20%	0
Social security tax rate for employees	6.20%	6.20%	0
Social security wage base	$128,400	$132,900	$4,500
Maximum social security tax for employees	$7,960.80	$8,239.80	$279
Medicare tax rate for employers	1.45%	1.45%	0
Medicare tax rate for employees	1.45%	1.45%	0
Medicare tax rate on employee’s wages over $200,000*	2.35%	2.35%	0
Medicare wage base	No Limit	No Limit	N/A

*Employers are required to withhold an additional 0.9% from employee wages in excess of $200,000, but there is not a matching increase on the employer contribution.

View the 2019 Social Security Administration Fact Sheet here.

This information is distributed with the understanding that the publisher is not rendering legal, accounting, tax or other professional services. If legal advice or other assistance is required, an attorney, CPA or tax advisor should be consulted.

Topics: Tax Industry News