Social Security wage base to increase in 2019

11 October 2018

The Social Security wage base will increase from $128,400 to $132,900 in 2019, higher than the $132,300 projected in the June 2018 Annual Report of The Board of Trustees. (See EY Payroll NewsFlash, Vol.19, #097, 6-7-2018; OASDI and SSI program rates & limits, 2019.)

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 a quick reference chart see the following page.

For the federal and state rates and limits for 2018 see our special report.

For the complete Social Security Administration fact sheet go here.

Social Security, Medicare and Disability insurance contributions

2019 compared to 2018

Description	2019	2018	Increase
Social Security tax rate for employees	6.20%	6.20%	-0-
Social Security tax rate for employers	6.20%	6.20%	-0-
Social Security wage base	$132,900.00	$128,400.00	$ 4,500.00
Maximum Social Security tax for employees	$ 8,239.80	$ 7,960.80	$ 279.00
Medicare tax rate for employers	1.45%	1.45%	-0-
Medicare tax rate for employees	1.45%*	1.45%	-0-
Medicare tax rate for employees on wages above $200,000*	2.35%	2.35%	-0-
Medicare wage base	No limit	No limit	N/A

* Employers must withhold an additional Medicare tax of .9% of wages in excess of $200,000. There is no employer matching contribution.

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Contact Information
For additional information concerning this Alert, please contact:

Workforce Advisory Services - Employment Tax Advisory Services
• Kenneth Hausser (kenneth.hausser@ey.com)
• Debera Salam (debera.salam@ey.com)
• Debbie Spyker (deborah.spyker@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2018-2020