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    Taxes and rates: wage bases and limits

    Article ID: 2000093

    Overview

    This article is about the rates and limits for Social Security, Medicare, federal income tax (FIT), state income tax (SIT), and state unemployment income (SUI).

    Assumptions

    You have employees subject to federal taxes.

    Details

    Wage base limits for DIY and Assisted payroll are updated by the tax table, and cannot be manually changed. To update the wage base limit for a tax for current period download the latest payroll updates.

    2014 tax rate and wage base table

    2014 - Tax Rate and Wage Base
    TaxFederal
    or
    State
    EREEWage
    Limit
    Max Tax ERMax Tax EE
    Social SecurityFederal6.2%6.2%$117,000.00$7,254$7,254
    MedicareFederalSee table below.NO MAX NO MAX
    Federal Income TaxFederalN/AVariesNO LIMITN/ANO MAX
    FUTA Federal0.6%N/A$7,000.00$42.00N/A
    State Income TaxStateN/AVariesNO LIMITN/ANO MAX
    State UnemploymentStateVariesVariesVariesVariesVaries

    Medicare:
    Employee Medicare Wages Employee Tax Rate Employer Tax Rate
    Wages equal or less than $200,000 1.45% 1.45%
    Wages greater than $200,000 2.35% (1.45% + 0.9%) 1.45%
    See the IRS FAQ Questions and Answers for the Additional Medicare Tax for more information.

    2013 tax rate and wage base table

    2013 - Tax Rate and Wage Base
    TaxFederal
    or
    State
    EREEWage
    Limit
    Max Tax ERMax Tax EE
    Social SecurityFederal6.2%6.2%$113,700.00$7,049.40$7,049.40
    MedicareFederalSee table below.NO MAX NO MAX
    Federal Income TaxFederalN/AVariesNO LIMITN/ANO MAX
    FUTA Federal0.6%N/A$7,000.00$42.00N/A
    State Income TaxStateN/AVariesNO LIMITN/ANO MAX
    State UnemploymentStateVariesVariesVariesVariesVaries

    Medicare:
    Employee Medicare Wages Employee Tax Rate Employer Tax Rate
    Wages equal or less than $200,000 1.45% 1.45%
    Wages greater than $200,000 2.35% (1.45% + 0.9%) 1.45%
    See the IRS FAQ Questions and Answers for the Additional Medicare Tax for more information.

    2012 tax rate and wage base table

    2012 - Tax Rate and Wage Base
    TaxFederal
    or
    State
    EREEWage
    Limit
    Max Tax ERMax Tax EE
    Social SecurityFederal6.2%4.2%$110,100.00$6,826.20$4,624.20
    MedicareFederal1.45%1.45%NO LIMITNO MAX NO MAX
    Federal Income TaxFederalN/AVariesNO LIMITN/ANO MAX
    FUTA Federal0.6%N/A$7,000.00$42.00N/A
    State Income TaxStateN/AVariesNO LIMITN/ANO MAX
    State UnemploymentStateVariesVariesVariesVariesVaries

    2011 tax rate and wage base table

    2011 - Tax Rate and Wage Base
    TaxFederal
    or
    State
    EREEWage
    Limit
    Max Tax ERMax Tax EE
    Social SecurityFederal6.2%4.2%$106,800.00$6,621.60$4,485.60
    MedicareFederal1.45%1.45%NO LIMITNO MAX NO MAX
    Federal Income TaxFederalN/AVariesNO LIMITN/ANO MAX
    FUTA (after 6/30)Federal0.6%N/A$7,000.00$42.00N/A
    FUTA (before 7/1)Federal0.8%N/A$7,000.00$56.00N/A
    State Income TaxStateN/AVariesNO LIMITN/ANO MAX
    State UnemploymentStateVariesVariesVariesVariesVaries

    Notes:

    • For more information about Social Security and Medicare, visit the Social Security Administration web site. 
    • For information about state taxes, visit your state tax agency's official web site.
    • If you earned more than the maximum in any year but had only one job, the amount shown in the Your Taxed Social Security Earnings column is only the maximum amount. If you had more than one job, the total that is recorded can be more than the maximum. However, only the maximum amount is used to calculate your benefit estimates.
    • When you have more than one job in a year, each of your employers must withhold SS taxes without regard to what other employers withhold. Your total withheld Social Security taxes can be in excess of the limit. This extra amount can be refunded to you after you file your personal income taxes at the end of the year.

    3 comments

    Doris4/15/2013

    30

    How do I change my Montana ui insurance rate?

    Reply

    Susan5/24/2013

    10

    Hi Doris,

    I believe the steps you are looking for are in the article Change SUI rates. This article also has some videos if you prefer watching the process. I think this will help.

    Angelika4/5/2013

    10

    I was required to update for the Michigan Obligations Assessment Changes for 2013. I did so on-line and all seemed OK. What do I do now?

    Reply

    Comments can not be added at this time.

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