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Tax Rate Information

Changes for 2015

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2015 social security wage base will be $118,500, an increase of $1,500 from the 2014 wage base of $117,000. However, the FICA tax rate will remain the same at 6.2% for the employee portion to match with the employer portion. There is no limit to wages subject to the Medicare Tax; therefore, all covered wages are still subject to the 1.45% until an employee reaches $200,000 an additional .9% to the employee Medicare Tax will be withhold for the employee portion only.  The maximum social security tax that employees and employers will each pay in 2015 is $7,347.00. This is an increase of $204.60 from the 2014 maximum tax of $7,254.00.

California State Disability Tax

For 2015 the State Disability Insurance (SDI) taxable wage limit will be $104,378.00, an increase of $2,742.00 from the 2014 wage base of $101,636.00. The employee contribution rate will change to 0.9% on annual earnings up to the wage base.  The maximum tax withhold for California State Disability is $939.40.

Changes for 2014

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2014 social security wage base will be $117,000, an increase of $3,300 from the 2013 wage base of $113,700. However, the FICA tax rate will be changed to 6.2% for the employee portion to match with the employer portion. There is no limit to wages subject to the Medicare Tax; therefore, all covered wages are still subject to the 1.45% until an employee reaches $200,000 an additional .9% to the employee Medicare Tax will be withhold for the employee portion only. The maximum social security tax that employees and employers will each pay in 2014 is $7,254.00. This is an increase of $204.60 from the 2013 maximum tax of $7,049.40.

California State Disability Tax

For 2014 the State Disability Insurance (SDI) taxable wage limit will be $101,636.00, an increase of $756.00 from the 2013 wage base of $100,880.00. The employee contribution rate will remain the same at 1.00% on annual earnings up to the wage base. The maximum tax withhold for California State Disability is $1,016.36.

Changes for 2013

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2013 social security wage base will be $113,700, an increase of $3,600 from the 2012 wage base of $110,100. However, the FICA tax rate will be changed to 6.2% for the employee portion to match with the employer portion. 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%, will change to 7.65% for 2013. The maximum social security tax that employees and employers will each pay in 2013 is $7,049.40. This is an increase of $2,425.20 from the 2012 maximum tax of $4,624.20.

California State Disability Tax

For 2013 the State Disability Insurance (SDI) taxable wage limit will be $100,880.00, an increase of $5,295.00 from the 2012 wage base of $95,585.00. The employee contribution rate will remain the same at 1.00% on annual earnings up to the wage base. The maximum tax withhold for California State Disability is $1,008.80.

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