The 2024 Social Security wage base has been set as $168,600, an increase of $8,400 over 2023. The Social Security tax rate remains at 12.4% (6.2% employee withholding and 6.2% employer contribution).
There is no limit to the wages subject to the Medicare tax, and therefore all eligible wages are subject to the 2.9% tax (1.45 employee withholding and 1.45% employer contribution). In addition, wages in excess of $200,000 will be subject to the additional 0.9% Medicare tax, which is an employee withholding only with no employer contribution.
The new wage base is effective beginning January 1, 2024.
The Social Security Administration (SSA) fact sheet for 2024 can be located here.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
