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FICA Withholding Rates for 2019

FICA withholding rates have not changed from 2013; the only difference is that the maximum wage subject to Social Security tax has increased to $132,900 for 2019.

The rates for 2019:

  • Employee/Employer rate for Social Security ($132,900 max subject wages): 6.2%
  • Employee/Employer rate for Medicare (no max subject wages): 1.45%
  • Employee rate for Medicare Surcharge (on wages over $200,000): 0.09%

The AMS Payroll module in 1099-Etc is payroll software that will auto-calculate these taxes and liabilities for you and report them on quarterly compliance returns, eliminating the worry of calculation mistakes.

Advanced Micro Solutions offers a free DEMO so that you can be sure that our software will work for you. Free Technical Support is offered Monday thru Friday from 8 AM to 6 PM central time, with extended hours in January and April.

Understanding the Wage Base Limit

Each year, the wage base limit for Social Security tax is subject to increase. In fact, it has increased almost every year since the federal Social Security program was put in place. From 1937 until 1974, and from 1979 until 1981, changes were set by statute. Every other year, increases were (and continue to be) determined under automatic adjustment provisions of the Social Security Act.

Limiting the amount of earnings subject to taxation ensures a cap on the amount of Social Security taxes paid by both employees and employers. In 2019, that cap is $8,239.80 for the employee; this number represents the maximum payment and applies to those who earn $132,900 or more annually.

By contrast, there is no wage base for Medicare taxes.

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