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This article describes how to set up the rates for calculating US taxes, Social Security, Medicare,etc. |
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For the latest information about developments related to Pub. 15-T, such as legislation enacted after it was published, go to https://www.irs.gov/forms-pubs/about-publication-15-t
Social Security
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, Medicare Taxes and 401(k) Contribution Rates
Tax rates and the social security wage base limit. Social Security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year.
Rates
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: (reference: 2020 Publication 15 (irs.gov), Publications 15T, Recent 15T)
2023
Social Security Tax Rate
Social Security tax rate is the same as in 2021/22 - 6.2% (amount withheld) each for the employer and employee (12.4% total)
2. Social security wage base limit has increased to $160,200
Medicare Tax Rate
Medicare and Additional Medicare tax rates and limits (Additional Medicare) stay the same as in year 2020/ 2021/2022
401k Pension plan Contribution Rate
401k Contribution limits has increased to $ 22 500 (from $ 20 500 in 2022)
401k Catch-up limit remains the same - $ 7 500 (from $ 6 500 in 2022)
2022
Social Security Tax Rate
Social Security tax rate is the same as in 2021 - 6.2% (amount withheld) each for the employer and employee (12.4% total)
Social security wage base limit is $ 147 000
Medicare Tax Rate
Medicare and Additional Medicare tax rates and limits (Additional Medicare) stay the same as in year 2020/ 2021
401k Pension plan Contribution Rate
401k Contribution limit has increased to $ 20 500 (from $ 19 500 in 2020)
401k Catch-up limit remains the same - $ 6 500
2021
Social Security Tax Rate
Social Security tax rate is the same as in 2020 - 6.2% (amount withheld) each for the employer and employee (12.4% total)
Social security wage base limit is $ 142 800
2020
Social Security Tax Rate
Social Security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total)
Social security wage base limit is $137,700
Medicare Tax Rate
1.45% (amount withheld) each for the employee and employer (2.9% total)
There is no wage base limit for Medicare Tax; all covered wages are subject to Medicare Tax
Additional Medicare Tax withholding
0.9% Additional Medicare Tax in excess of $200,000 in a calendar year
No employer share for Additional Medicare Tax ( go to this site for other information about additional Medicare Tax IRS.gov/ADMT)
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Top organization unit > Rates: define Global Rates used for calculation of US taxes and contributions:
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Federal Income Tax
Tax Tables on Regular Wage
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