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For 2023, the maximum limit on earnings for withholding of Social Security (old-age, survivors, and disability insurance) tax is $160,200.00. The Social Security tax rate remains at 6.2 percent. The resulting maximum Social Security tax for 2023 is $9,932.40.
Payroll taxes are the taxes employees and employers pay on wages, tips, and salaries. These taxes include federal, state, and local taxes, as well as FICA taxes, which are taxes for Social Security and Medicare. These taxes are all taken out of an employees wages.
A wage base limit is a per-employee cap on the earnings that are taxable. Once an employee docHubes the cap, taxes may stop or increase. Note: Taxes will start calculating again if your state or the federal government changes the wage base limit.
Only the social security tax has a wage base limit. The wage base limit is the maximum wage thats subject to the tax for that year.
Only the social security tax has a wage base limit. The wage base limit is the maximum wage thats subject to the tax for that year. For earnings in 2024, this base is $168,600.
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The Social Security Administration (SSA) announced that the maximum earnings subject to Social Security (OASDI) tax will increase from $160,200 to $168,600 in 2024 (an increase of $8,400).
This limit changes each year with changes in the national average wage index. We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2024, this base is $168,600.
There is no taxable wage limit. The withholding rate is based on the employees Form W-4 or DE 4. There is no maximum tax.

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