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Social Security Payroll Tax Increase

Social Security Payroll Tax Deduction Rate Increase for 2018

Maximum Table Earnings Increase

According to the Social Security Administration, for 2018 the Social Security taxable wage base will increase from $127,200 to $128,700 maximum taxable earnings, an increase of $1,500.

FICA and Social Security Rates to Remain the Same

However, The Federal Insurance Contributions Act (FICA) tax rate of 7.65% will remain the same for 2018, which is the combined rate for Social Security (6.2% up to the maximum taxable amount) and Medicare (1.45%).

For individuals with more than $200,000 earned income ($250,000 for married couples filing jointly), an additional 0.9 percent in Medicare taxes will apply. Note: No limit currently exists on the amount of wages subject to the Medicare tax.

For individuals who are Self-Employed, the tax rate remains unchanged at 15.30%.

Learn more: https://www.ssa.gov/news/press/factsheets/colafacts2018.pdf 

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