Tax Rate Information

Changes for 2020

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2020 social security wage base will be $137,700, an increase of $4,800 from 2019 wage base of $132,900.  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 2020 is $8,537.40.  This is an increase of $279.60 from the 2019 maximum tax of $8,239.80.

California State Disability Tax

For 2020 the State Disability Insurance (SDI) taxable wage limit will be $122,909.00, an increase of $4,538.00 from the 2019 wage base of $118,371.00. The employee contribution rate will remain the same at 1.00% of annual earnings up to the wage base.  The maximum tax withhold for California State Disability is $1,229.09.

Changes for 2019

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2019 social security wage base will be $132,900, an increase of $4,500 from 2018 wage base of $128,400.  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 2019 is $8,239.80.  This is an increase of $279.00 from the 2018 maximum tax of $7,960.80.

California State Disability Tax

For 2019 the State Disability Insurance (SDI) taxable wage limit will be $118,371.00, an increase of $3,404.00 from the 2018 wage base of $114,967.00. The employee contribution rate will remain the same at 1.00% of annual earnings up to the wage base.  The maximum tax withhold for California State Disability is $1,183.71.

Changes for 2018

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2018 social security wage base will be $128,400, an increase of $1,200 from 2017 wage base of $127,200.  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 2018 is $7,960.40.  This is an increase of $74.00 from the 2017 maximum tax of $7,886.40.

California State Disability Tax

For 2018 the State Disability Insurance (SDI) taxable wage limit will be $114,967.00, an increase of $4,065.00 from the 2017 wage base of $110,902.00. The employee contribution rate will increase to 1.00% from .90% of annual earnings up to the wage base.  The maximum tax withhold for California State Disability is $1,149.67.

 

 

Return to Top