2026 FICA Wage Base Update: What Mobility & Payroll Teams Need to Know
The Social Security Administration (SSA) has officially announced the new FICA wage base for 2026. Beginning January 1, 2026, payroll and mobility teams must adjust their systems to reflect these updates when calculating FICA withholdings and tax gross-ups.
What’s Changing in 2026?
FICA Wage Base:
Increasing from $176,100 → $184,500
📈 That’s a 4.8% increase
OASDI Tax Rate:
Remains unchanged at 6.2%
Medicare Thresholds & Rates:
No changes for 2026
Social Security Benefits:
Will increase by 2.8%
🔗 Full details are available on the SSA website: ssa.gov/cola
Why This Matters for Global Mobility Programs
The FICA wage base sets the threshold for how much of an employee’s earnings are subject to Social Security tax (OASDI). As the threshold increases, so does the total tax liability on high earners—and this impacts gross-up calculations for taxable relocation benefits.
Failing to update gross-up logic and payroll withholdings to reflect the new base can result in:
Underpayment or overpayment of FICA taxes
W-2 inaccuracies and year-end reporting issues
Employee frustration and trust erosion
Compliance exposure for your payroll team
How Orion Keeps Clients Ahead of Tax Changes
Orion Mobility’s gross-up engine is updated in real-time with IRS and SSA changes to ensure:
Jurisdictional accuracy across all U.S. states
Automated payroll file generation with updated thresholds
Audit-ready documentation for each relocation file
W-2 and year-end reconciliation support
Our clients don't have to chase updates—we build them into your system so your mobility program stays compliant and cost-efficient.
Looking Ahead
Federal tax tables for 2026 were released earlier this month
IRS mileage rates are expected to be announced in December
We’ll continue to monitor regulatory updates and help clients navigate changes without disruption.
Final Takeaway:
The new FICA wage base of $184,500 takes effect January 1, 2026.
If your gross-up calculations and payroll systems aren’t updated by then, you risk compliance gaps and financial errors.