A low cost-of-living index is keeping the 2016 Social Security tax rate unchanged and retirement plan limits remain largely unchanged.
Wages subject to the Social Security tax in 2016 remain at $118,500. Wages that exceed the amount are not subject to the Social Security portion of the payroll tax.
FICA Rates
Social Security and Medicare payroll taxes are combined as the Federal Insurance Contributions Act (FICA) tax.
The chart below identifies the rates.
Retirement Plan Limits
Retirement plan limits are also affected by the cost-of-living index. 2016 limits were released by the Internal Revenue Service earlier this fall.
For more information, contact your Bukaty Companies benefits consultant at 913.345.0440.
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