Social Security Wage Base Increases in 2019
The Social Security Administration (SSA) announced that the maximum earnings subject to the Social Security component of the FICA tax will increase from $128,400 to $132,900 for 2019.
This means that for 2019, the maximum Social Security tax that employers and employees will each pay is $8,239.80 ($132,900 x 6.2%). A self-employed person with at least $132,900 in net self-employment earnings will pay $16,479.60 ($132,900 x 12.4%) for the Social Security part of the self-employment tax.
The Medicare component remains 1.45% of all earnings, and individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly, $125,000 for married filing separately) will pay an additional 0.9% in Medicare taxes.
Other 2019 cost-of-living adjustments announced by the SSA are available at www.ssa.gov/policy/docs/quickfacts/prog_highlights/RatesLimits2019.html
Talk to your LSL CPAs representative at (714) 569-1000 to stay on top of the latest IRS and Tax Law Changes news.
With over three decades in public accounting, Sherry’s area of expertise include individual and business taxation, estate gift and trust taxation, IRS and Franchise Tax Board representation, strategic growth strategies, tax planning, and wealth preservation. Sherry is responsible for our estate tax department as well, specializing in estate and trust planning and fiduciary accounting.
You can reach Sherry at 714-569-1000