Tax Rate Changes

Payroll Tax Rate Changes for 2010

The Social Security Administration (SSA) has announced that the 2010 social security wage base will remain the same as 2009 which is $106,800.   As in prior years, there is no limit to wages subject to the Medicare Tax; therefore, all covered wages are still subject to the 1.45% tax.  The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2010. The maximum social security tax that employees and employers will each pay in 2010 is $6,621.60.

California State Disability Tax

For 2010 the State Disability Insurance (SDI) taxable wage limit will be $93,316.00. An increase of $2,647.00 from the 2009 wage base of $90,669.00. The employee contribution rate will be 1.1% of annual earnings up to the wage base.  The maximum tax withhold for California State Disability is $1,026.48.

Payroll Tax Rate Changes for 2009

The Social Security Administration (SSA) has announced that the 2009 social security wage base will be $106,800, an increase of $4,800 from the 2008 wage base of $102,000. As in prior years, there is no limit to wages subject to the Medicare Tax; therefore, all covered wages are still subject to the 1.45% tax.
The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2009. The maximum social security tax that employees and employers will each pay in 2009 is $6,621.60. This is an increase of $297.60 from the 2008 maximum tax of $6,324.

California State Disability Tax

For 2009 the State Disability Insurance (SDI) taxable wage limit will be $90,669, an increase of $3,971.00 from the 2008 wage base of $86,698. The employee contribution rate will increase to 1.1% from 0.80% of annual earnings up to the wage base.  The maximum tax to withhold for California State Disability is $997.36.

Payroll Tax Rate Changes for 2008

The Social Security Administration (SSA) has announced that the 2008 social security wage base will be $102,000, an increase of $4,500 from the 2007 wage base of $97,500. As in prior years, there is no limit to wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.
The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2008. The maximum social security tax that employees and employers will each pay in 2008 is $6,324. This is an increase of $297 from the 2007 maximum tax of $6,045.

California State Disability Tax

For 2008 the State Disability Insurance (SDI) taxable wage limit will be $86,698, an increase of $3,309 from the 2007 wage base of $83,389 The employee contribution rate will increase to 0.80% from 0.60% of annual earnings up to the wage base.  The maximum tax to withhold for California State Disability is $693.58.

 

Payroll Tax Rate Changes for 2007

The Social Security Administration (SSA) has announced that the 2007 social security wage base will be $97,400, an increase of $3,200 from the 2006 wage base of $94,200. As in prior years, there is no limit to wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.

The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2007. The maximum social security tax that employees and employers will each pay in 2007 is $6,038.80. This is an increase of $198.80 from the 2006 maximum tax of $5,840.

California State Disability Tax

For 2007 the State Disability Insurance (SDI) taxable wage limit will be $83,389, an increase of $3,971 from the 2006 wage base of $79,418. The employee contribution rate will decrease to 0.60% from 0.80% of annual earnings up to the wage base.  The maximum tax to withhold for California State Disability is $500.33.