On October 10, the Social Security Administration (SSA) announced that the 2020 social security wage base will be $137,700, which is an increase of $4,800 from $132,900 in 2019 [SSA, Press Release, 10-10-19].
Maximum social security tax. The FICA tax rate remains 7.65% for 2020 up to the social security wage base (see the Social Security Fact Sheet: 2020 Social Security Changes). The maximum social security tax employees and employers will each pay in 2020 is $8,537.40, an increase of $297.60 from $8,239.80 in 2019.
For more information, see the APA Compliance Update, 2020 Social Security Wage Base Announced. Compliance updates are emailed to APA members and are also available on the Compliance Updates web page.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.