SSA lowers the 2018 Social Security wage base from what was previously announced
On November 27, 2017, the Social Security Administration (SSA) announced that due to its receipt in late October 2017 of approximately 500,000 Form W-2 corrections for tax year 2016, it has now lowered the 2018 Social Security taxable wage base to $128,400, down from the $128,700 it originally announced on October 13, 2017.
The revised 2018 wage base of $128,400 is lower than the $130,500 projected in the July 2017 Annual Report of The Board of Trustees.
The Medicare tax rate for 2018 remains at 1.45% of all covered earnings for employers and employees. For wages in excess of $200,000, the Additional Medicare Tax of 0.9% applies to earned
income of more than $200,000 ($250,000 for married couples filing joint). While employers are required to withhold the additional 0.9% on covered wages in excess of $200,000, there is no employer matching contribution.