The Social Security Administration (SSA) announced that the wage base for Social Security will increase from $132,900 to $137,700 for 2020. This is an increase of $4,800.
If employers and employees exceed this wage base they will be paying an additional $297.60 ($4,800 increase x 6.2% Social Security tax rate) in FICA tax. If a self-employed person exceeds this wage base they will be paying an additional $595.20 ($4,800 increase x 12.4% self-employed Social Security tax rate) in FICA tax.
Medicare Tax Rate
The Medicare tax rate remains at 1.45% of all earnings, plus an additional 0.9% if more than $200,000 in earned income ($250,000 married filing jointly).