Federal Wage & Tax Rates
Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. This limit is adjusted each year with changes in the national average wage index. This annual limit is called the contribution and benefit base.
For earnings in 2019 (increased by more than 3% from 2018), the Social Security taxable wage base is $132,900.
FICA | Social Security (OASDI Only)
|Social Security Taxable Wage Base per Employee||$132,900|
|Employer Tax Rate for Social Security||6.2%|
|Employee Tax Rate for Social Security||6.2%|
FICA | Medicare (Hospital Insurance Only)
|Medicare Taxable Wage Base per Employee||No Limit|
|Employer and Employee Tax Rate for Medicare||1.45%|
|Additional Tax on Earning > $200k||0.9%|
FUTA | Federal Unemployment Tax Act
|FUTA Taxable Wage Base per Employee||$7,000|
|Employer Net Tax Rate||0.6%|
Federal Minimum wage Rates*
|Tipped Employee: Minimum Wage||$2.13|
|Tip Credit (Max.)||$5.12|
*Please note some states have minimum wages that are higher than federal rates. For information on state minimum wage rates, click here to view the DOL’s website.
Pension Plan Limits
The federal government sets dollar limits as to how much an employee can contribute to their company’s qualified retirement plan each tax year. These limits are based on the cost-of-living index. If an employee reaches the age of 50 during the current tax year, they will qualify for the “Catch-Up Provision"… only if it is an established provision of the company’s 401(k) plan.
Some of these limits have updated from 2018.
|401(k) Limit for 2019||$19,000||$6,000|
|SIMPLE IRA Plan for 2019||$13,000||$3,000|