Social Security Administration Sets the Wage Base for 2019 | Jacobson Lawrence & Company, formerly Rue & Associates

Social Security Administration Sets the Wage Base for 2019

The Social Security Administration declared that the maximum amount of wages on individuals to old age, survivors, and disability insurance tax will increase to $132,900 in 2019. The OASDI tax rate is 6.2 percent, so an employee with wages up to or above the utmost in 2019 would pay $8,239.80 in tax and the employer would pay an equal amount. Self-employed individuals will pay a tax rate of 12.4 percent.

The Medicare hospital insurance tax of 1.45 percent for each employee and employer, or 2.9 percent for the self-employed.

The Social Security Administration also stated that beneficiaries of Social Security benefits would get a 2.8 percent cost-of-living adjustment and that the earnings test for the income that benefit recipients can receive without their benefits being reduced each year is $17,640 before full retirement age. And the limit taxpayers can earn in the year they reach full retirement is $46,920.

Comments are closed.