The Social Security Administration (SSA) announced that the maximum earnings subject to Social Security tax will increase from $160,200 to $168,600 in 2024 (an increase of $8,400). The maximum Social Security employer contribution will increase by $520.80 in 2024.
For 2024, the FICA tax rate for both employers and employees remains 7.65% (6.2% for Social Security and 1.45% for Medicare).
For 2024, an employer must withhold:
- 6.2% Social Security tax on the first $168,600 of employee wages (maximum tax is $10,453.20; i.e., 6.20% × $168,600), plus
- 1.45% Medicare tax on the first $200,000 of employee wages, plus
- 2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all employee wages in excess of $200,000.
Contact your Sisterson representative with any questions.