As the end of the year approaches, it’s time to turn our
attention to planning for 2016. This
includes ensuring that proper payroll tax rates and wage bases are updated in
payroll systems as of January 1. For
2016, the Old Age, Survivors and Disability Insurance (OASDI) taxable wage base
remains at $118,500, the same level as in 2015.
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 dvanprooyen@swartz-retson.com.
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