2020 FICA Wage Base Announced
10.17.19 | The Social Security Administration has announced the new FICA wage base for 2020. The threshold will rise to $137,700 in 2020 from $132,900 in 2019, which is an increase of 3.6%.
The OASDI rate of 6.2%, as well as the Medicare threshold and rates, will remain the same. Meanwhile, Social Security benefits will increase by 1.6% starting December 31, 2019.
On January 1, 2020, payroll departments and payroll companies must begin using the new base to calculate FICA withholdings and gross-ups.
For more information, please see the official announcement.