16 October 2017 Social Security wage base to increase in 2018 The Social Security wage base will increase from $127,200 to $128,700 in 2018, lower than the $130,500 projected in the July 2017 Annual Report of The Board of Trustees. (See Tax Alert 2017-1170; OASDI and SSI program rates & limits, 2018.) The Medicare tax rate for 2018 remains at 1.45% of all covered earnings for employers and employees. For wages in excess of $200,000, 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 in excess of $200,000, there is no employer matching contribution. For the federal and state rates and limits for 2017 see our special report. For the complete Social Security Administration fact sheet go here.
* Employers must withhold an additional Medicare tax of .9% of wages in excess of $200,000. There is no employer matching contribution. Document ID: 2017-1713 | ||||||||||||||||||||||||||||||||||||
