Social Security Tax
The Social Security wage base limit will be $128,400.
The Social Security tax rate for employees will remain 6.2%. The maximum social security withholding tax employees will pay is $7,960.80.
Medicare tax rate remains 1.45% with no wage base limit.
New Additional Medicare Tax
Employees receiving income in excess of $200,000 will be subject to an additional Medicare Tax of 0.9%. As a result wages in excess of $200,000 will be taxed at 2.35% (1.45% + 0.9%).
Federal Income Tax
The Federal income tax withholding rates have changed effective January 1st.
Federal tax tables for Non Resident Alien employees increased.
The flat rate for withholding on supplemental wage payments up to and including $1 million will be 22%
NYS Income Tax
The New York State withholding tax tables have been revised.
The flat rate for withholding on supplemental wage payments will be 9.62%.
If you have questions regarding this information you may contact: