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