As the end of the year approaches, it’s time to turn our attention to planning for 2017. This includes ensuring that proper payroll tax rates and wage bases are updated in payroll systems as of January 1. For 2017, the Old Age, Survivors and Disability Insurance (OASDI) taxable wage base increases to $127,200, an increase from the base of $118,500 in 2016. The OASDI tax rate for both employees and the employer match remains at 6.2%.
The Medicare portion of the FICA tax continues to have no limit or cap on its taxable wage base. The base Medicare rate for both employees and the employer match remains at 1.45% of wages. Employees earning more than $200,000, however, must pay an additional 0.9%. This additional tax is withheld and remitted by their employer, but not matched by the employer.
For guidance with your payroll tax planning, contact our office. Call us at (219) 769-3616 with your questions, or email them to firstname.lastname@example.org.