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October 22, 2019
US Social Security wage base to increase in 2020
The Social Security wage base will increase from $132,900 to $137,700 in 2020, higher than the $137,100 projected in the April 2019 Annual Report of The Board of Trustees. (See EY Payroll NewsFlash, Vol.20, #055, 4-25-2019; OASDI and SSI program rates & limits, 2020.)
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). While employers are required to withhold the additional 0.9% on covered wages over $200,000, there is no employer matching contribution.
For a quick reference chart see below.
For the federal and state rates and limits for 2019 see EY's special report.
For the complete Social Security Administration fact sheet go here.
Social Security, Medicare and disability insurance contributions
2019 compared to 2020
* Employers must withhold the Additional Medicare Tax of .9% of wages over $200,000. There is no employer matching contribution.
Workforce Advisory Services - Employment Tax Advisory Services
EY Payroll News Flash