2025 Fica Wage Limit. The wage base changes each year, with an. A wage base limit applies to employees who pay social security taxes.
As an employer, you are required to withhold 6.2% of each employee’s taxable gross wages to cover this tax, up to a maximum wage base limit. In other words, if you make $168,600, your maximum fica tax will be.
The Social Security Wage Base Will Rise In 2024 To $168,600, A 5.2% Increase From Its 2023 Wage Base Of $160,200.
Social security wage base limit for 2024:
For Tax Years Starting In 2024, An Employer May Make Uniform Additional Contributions For Each Simple Plan Employee To.
In other words, if you make $168,600, your maximum fica tax will be.
The Social Security Administration (Ssa) Announced That The Maximum Earnings Subject To Social Security (Oasdi) Tax Will Increase From $160,200 To $168,600.
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Social Security And Medicare Payroll Taxes Are Collected Together As The Federal Insurance Contributions Act (Fica) Tax.
If you are working, there is a limit on the amount of your earnings that is taxed by social security.
Since The Employee's Annual Salary Is Below The Social Security Wage Base Limit,The Entire Amount Is Subject To Social Security.
The social security administration (ssa) announced that the maximum earnings subject to social security (oasdi) tax will increase from $160,200 to $168,600.
This Means That Gross Income Above A Certain Threshold Is Exempt From This Tax.