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Mar 4, 2024 · You aren’t required to pay the Social Security tax on any income beyond the Social Security wage base limit. In 2024, this limit rises to $168,600, up from the 2023 limit of $160,200. As a result, in 2024 you’ll pay no more than $10,453 ($168,600 x 6.2%) in Social Security taxes. Keep in mind that this income limit applies only to the ...
Jan 10, 2024 · The Social Security tax limit refers to the maximum amount of earnings that are subject to Social Security tax. For 2024, the Social Security tax limit is $168,600. Workers earning less than this ...
2023. $160,200. 2024. $168,600. If you are working, there is a limit on the amount of your earnings that is taxed by Social Security. This amount is known as the maximum taxable earnings and changes each year.
YearAmount2024$168,6002023$160,2002022$147,0002021$142,800- Social Security and Medicare Withholding Rates
- Additional Medicare Tax Withholding Rate
- Wage Base Limits
The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Refer to Publication 15 (Circular E), Employer's Tax Guidefor more information.
Additional Medicare Tax applies to an individual's Medicare wages that exceed a threshold amount based on the taxpayer's filing status. Employers are responsible for withholding the 0.9% Additional Medicare Tax on an individual's wages paid in excess of $200,000 in a calendar year, without regard to filing status. An employer is required to begin w...
Only the social security tax has a wage base limit. The wage base limit is the maximum wage that's subject to the tax for that year. For earnings in 2024, this base is $168,600. Refer to "What's New" in Publication 15for the current wage limit for social security wages. There's no wage base limit for Medicare tax. All covered wages are subject to M...
We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2024, this base is $168,600. The OASDI tax rate for wages paid in 2024 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $168,600 ...
In 2024, the maximum amount of earnings on which you must pay Social Security tax is $168,600. We raise this amount yearly to keep pace with increases in average wages. There is no maximum earnings amount for Medicare tax. You must pay Medicare tax on all your earnings.
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Jun 22, 2011 · The social security wage base limit is $160,200.The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2022. There is no wage base limit for Medicare tax.Social security and Medicare taxes apply to the wages of household workers you pay $2,600 or more in cash wages in 2023. Social security and Medicare taxes apply to ...
