The Social Security Administration (SSA)
has announced that the wage base for computing the Social Security tax (OASDI)
in 2019 will increase to $132,900. This is up from $128,400 for 2018 ($127,200
for 2017).
For 2019, an
employee will pay:
1.45% Medicare
tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for
married taxpayers filing a separate return), plus
2.35% Medicare
tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all wages in
excess of $200,000 ($250,000 for joint returns; $125,000 for married taxpayers
filing a separate return). (Code Sec. 3101(b)(2))
For 2019,
the self-employment tax imposed on self-employed people is:
12.4% OASDI on
the first $132,900 of self-employment income, for a maximum tax of $16,479.60
(12.40% of $132,900); plus
2.90% Medicare
tax on the first $200,000 of self-employment income ($250,000 of combined
self-employment income on a joint return, $125,000 on a separate return), (Code
Sec. 1401(a), Code Sec. 1401(b)), plus
3.8% (2.90% regular Medicare tax + 0.9% additional Medicare tax) on all self-employment income in excess of $200,000 ($250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing a separate return). (Code Sec. 1401(b)(2))
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