2020 Payroll Taxes Will Hit Higher Incomes

Industry Update November 11, 2019 Print this Article

2020 Payroll Taxes Will Hit Higher Incomes

Wages subject to FICA taxes will increase in 2020. On January 1, 2020, the maximum earnings subject to the Social Security payroll tax will increase to $137,700, up from the $132,900 maximum for 2019.

The SSA also posted a fact sheet summarizing the 2020 changes.

Next Steps

Employers should be mindful of these changes and work with their payroll providers to adjust withholding rates based on employee earnings accordingly.

HR Works, Inc., headquartered in Upsate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.

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