Get ready: The SSA just announced the taxable wage base for 2019.

Maximum taxable earning will rise to $132,900 – a $4,500 increase from the 2018 wage base of $128,400.

The tax rate will remain at the amount set by law: 5.2% for both employers and employees.


Numbers to know


Given the current tax rate, you’ll need to withhold a total of $8,239/80 from the wages of a person who makes $132,900 or more for Social Security taxes. Companies must contribute an equal amount to SSA for each applicable worker.


SSA also announced the taxable thresholds for certain types of workers. In 2019, domestic workers must make $2100 before taxes can be deducted, and election works must earn $1800.


It’s a good idea to keep you CFO and the rest of the finance department in the loop about these changes.


Note: Medicare payroll tax guidelines will be the same in 2019. Remember, there’s currently no limit on the amount of earnings subject to Medicare taxes, and tax rates are at 1.45% for employees and employers.