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Proliant By Proliant • October 19, 2018

2019 Social Security Wage Base Info Released

The Social Security Administration (SSA) has announced the 2019 Social Security wage base for 2019 will increase by $4,500 from the 2018 amount of $128,400 to $132,900. There is currently no limit to wages subject to the Medicare tax of 1.45% in 2018. 2019 employees (not employers as they do not pay the extra tax) who make over $200,000 will be subject to an extra 0.9% Medicare tax withholding.

The Federal Insurance Contributions Act (FICA) tax rate will also be rising in 2019 due to the higher Social Security tax rate. The FICA takes the Social Security tax rate, 6.2%, and the Medicare tax rate, 1.45%, and combines them to give us 7.65% for 2019 up to the Social Security wage base. Based on those numbers the maximum Social Security tax employees and employers look to pay in 2019 is $8,239.80, an increase from 2018’s $7,960.80 by $279.00.

Those who are self-employed will also be subject to the same 2019 Social Security wage base of $132,900, with no limits on covered self-employment income subject to the Medicare tax. Self-employed individuals can count on their tax rate of 15.3% (Social Security of 12.4% and Medicare of 2.9%) up to the social security wage base. Their maximum Social Security tax will be $16,479.60.

Do these changes have you worried about remaining tax compliant in 2019? Make sure to check out Proliant’s full suite of Human Capital Management so you never have to worry about Payroll compliance again. www.proliant.com

To study the Social Security changes yourself, you can refer to the SSA’s table HERE.

Bibliography

ADP . (2018, October). Legislative Updates. Retrieved from ADP Research Institute: https://www.adp.com/resources/articles-and-insights/articles/e/eow-social-security-wage-base-for-2019-announced.aspx?referrer={E2920188-A93E-4144-90CE-442A865BF40B}

Social Security Administration. (2018, October). Fact Sheets. Retrieved from Social Security Administration: https://www.ssa.gov/news/press/factsheets/colafacts2019.pdf