2019 FICA Wage Base Announced
The Social Security Administration has announced the new FICA wage base for 2019. The threshold will rise to $132,900 in 2019 from $128,400 in 2018, which is an increase of just over 3.5%.
Social Security benefits will increase by 2.8%, the largest cost-of-living increase since 2012.
The OASDI rate of 6.2%, as well as the Medicare threshold and rates, will remain the same.
On January 1, payroll departments and payroll companies must begin using the new base to calculate FICA withholdings and gross-ups. The 2019 increase is based upon the percentage increase in average wages.
For more information, please see the official IRS announcement.