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Social Security Tax

The maximum amount of wages subject to Social Security taxes (OASDI) for 2019 increased to $132,900 from $128,400 in 2018.  The employer’s maximum share also increased to $8,239.80 (6.2%) from $7,960.80 (6.2%) in 2018.  As a result of the maximum wage limitation, the employer will not withhold Social Security wages once an employee exceeds the wage limit.  The maximum amount on any W-2 in box 3 should be $8,239.80.  On the other hand, there is no limit to wages subject to Medicare tax (1.45%).


Self-employed individuals are subject to Social Security and Medicare tax, also known as self-employment tax.  The self-employment tax is based on 92.35% of the taxpayer’s net profit, not to exceed $132,900.  The taxpayer can deduct ½ of his self-employment tax as an adjustment to income on Schedule 1 (Form 1040), line 27

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Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

Serving Henderson, NC, Buncombe County, Polk County, Transylvania County

E: cathy@commoncentsqbo.com

P: 828-595-2835

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