Tax Rate Information

Changes for 2018

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2018 social security wage base will be $128,700, an increase of $1,500 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 $7,979.40.  This is an increase of $93.00 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.

Changes for 2017

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2017 social security wage base will be $127,200, an increase of $8,700 from 2016 wage base of $118,500.  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 2017 is $7,886.40.  This is an increase of $539.40 from the 2016 maximum tax of $7,347.00.

California State Disability Tax

For 2017 the State Disability Insurance (SDI) taxable wage limit will be $110,902.00, an increase of $4,160.00 from the 2016 wage base of $106,742.00. The employee contribution rate will remain the same at 0.9% on annual earnings up to the wage base.  The maximum tax withhold for California State Disability is $998.12.

Changes for 2016

Payroll Tax Rate

The Social Security Administration (SSA) has announced that the 2016 social security wage base will be $118,500, unchanged from 2015.  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 withheld for the employee portion only.  The maximum social security tax that employees and employers will each pay in 2016 is $7,347.00, also unchanged from 2015.

California State Disability Tax

For 2016 the State Disability Insurance (SDI) taxable wage limit will be $106,742.00, an increase of $2,364.00 from the 2015 wage base of $104,378.00. 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 $960.68.