Social Security Taxable Wage Base for 2016
The 2016 Social Security wage base is unchanged from the prior year at $118,500. The maximum Social Security tax employees and employers will each pay in 2016 is $7,347 ($118,500 x 6.2%).
Continuing for 2016, wages paid in excess of $200,000 are subject to the 0.9% Additional Medicare Tax (1.45% + 0.9% = 2.35% total) and are withheld from only the employee’s wages. The employer’s portion of the Medicare tax remains unchanged at 1.45%.