SSA announces new taxable wage base for 2020 Heads up: The SSA’s released the new taxable wage base for 2020. As of Jan 1, 2020, the maximum amount of earnings subject to Social Security tax will be $137,700. This is a $4,800 increase over the 2019 taxable wage base of $132,900. Essential withholding info Social Security tax rates for both employees and employers remain 6.2% as required by law. At that tax rate, you’ll have to withhold a total of $8,537.40 in Social Security tax from the wages of each employee who makes $137,700 or more next year. Employers must contribute an equal amount. In a news release, SSA also included reminders about Medicare tax. Just like Social Security tax, the rate’s set by law and remains 1.45% for 2020. However, unlike Social Security tax, there’s no wage base. All wages earned are subject to Medicare tax. And, take note: Workers who earn more than $200,000 annually ($250,000 for married couples who file jointly) must pay an additional 0.9% in Medicare tax. More info: