The Social Security Administration (SSA) has announced that the 2020 wage base for computing the Social Security tax (OASDI) will increase to $137,700. This is up from $132,900 for 2019. The wage base is the maximum amount of earnings subject to Social Security tax.
For 2020, the Federal Insurance Contributions Act (FICA) tax rate for employers is 7.65%; 6.2% for Old Age, Survivors and Disability Insurance (OASDI; commonly known as the Social Security tax); and 1.45% for Hospital Insurance (HI; commonly known as the Medicare tax).
For more information, please visit the Social Security Administration website.
If you have any questions, please contact one of our tax professionals at (973) 298-8500.