Social Security Administration Announces 2009 Wage Base

On October 16, 2008 the Social Security Administration (SSA) announced the social security wage base for 2009 will be $106,800 which is an increase of $4,800 from 2008.

The social security wages % remains at 6.25%.
The maximum social security tax an employee will pay for 2009 is $6,621.60 ($106,800 x 6.25%).

As in prior years the wages subject to Medicare tax do not have a wage limit, therefore all wages are subject to the 1.45% tax.

The combined social security tax rate of 6.25% and the Medicare tax rate of 1.45% is 7.65%.  The employee and employer both pay 7.65%.  The total tax rate paid to SSA is 12.4% for social security (6.25% x 2) and 2.9% for Medicare (1.45% x 2).

Get a Free Demo

Fill out the form below & we'll email you a video product demo!

Which solution are you interested in?
Optimum Solutions will not sell, rent, or lease your personal information.

Vice President Robert Porter, Brandt Truck Line, Inc.

Very good product and documentation.