The Social Security Administration (SSA) announced that the wage ceiling will increase to $118,500 for 2015, up from $117,000 in 2014.
At least the Social Security and Medicare tax withholding rates will remain the same. The rates are 7.65% on amounts up to the wage ceiling (6.2% for the Social Security tax plus 1.45% for the Medicare tax) and $1.45% on amounts above that threshold (for the Medicare tax). However, at higher wage levels, the 0.9% additional Medicare tax raises the Medicare tax withholding rate to 2.35%.
- Small Business Tax Deduction Strategies No matches