Get ready for a higher social security wage base
If you're an employer, you'll need to withhold social
security tax from a higher amount of your employees' wages in 2017. The wage
base for withholding social security tax from wages has increased to $127,200,
up from $118,500 in 2016. The federal payroll tax rate remains 7.65%, a
combination of social security tax withheld at 6.2%, and Medicare tax withheld
at 1.45%. There is no wage base for the 1.45% Medicare tax. You'll withhold
that percentage on all wages you pay your employees.
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