2016 Payroll Tax Deduction Rates Remain Unchanged
For 2016, the Social Security Administration announced that the Social Security taxable wage base will remain the same — $118,500 maximum taxable earnings.
The Social Security withholding rate is unchanged for 2016 and remains at 6.2 percent, up to the maximum taxable amount. The FICA tax rate – which is the combined total of the Social Security tax rate and the 1.45 percent Medicare tax rate — also remains unchanged at 7.65 percent.
Individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes.
There is no limit on the amount of wages subject to the Medicare tax.
Source: CalChamber, Social Security Administration | 2015 © Copyright Payroll Masters
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