The Payroll Experts Speak Out

Henry’s story reminds us that while life can change in an instant, we all have the power to choose how we react to that change. We have the power to make a difference in our own lives, the lives of our friends and neighbors, and in our community. Henry is a reminder to keep moving forward and keep making positive decisions. In honor of Henry’s reminder, please check back regularly to see added pictures of Henry’s escapades, read posts on what Henry has been up to, and see, how he has impacted our business; all while learning the inside scoop on his life as a rescue dog.

If you would like to see more of Henry, you can see his gallery click here.



2010 Social Security Wage Base and FICA Tax Rate

Thursday, October 15, 2009

AMERICAN PAYROLL ASSOCIATION
Compliance Update

Social Security Wage Base Remains at $106,800 in 2010 The Social Security Administration (SSA) announced on Thursday, October 15, 2009, that the 2010 social security wage base will be $106,800, unchanged from 2009. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax.

The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2010. The maximum social security tax employees and employers will each pay in 2010 is $6,621.60. This is unchanged from the 2009 maximum.

The social security wage base for self-employed individuals in 2010 will also be $106,800. There is no limit on covered self-employment income that will be subject to the Medicare tax. The self-employment tax rate remains 15.3% (combined social security tax rate of 12.4% and Medicare tax rate of 2.9%). In 2010, the maximum social security tax for a self-employed individual will be $13,243.20. This is unchanged from the 2009 maximum.

FICA coverage threshold unchanged for domestic, election workers The threshold for coverage under social security and Medicare for domestic employees will be $1,700 in 2010, unchanged from 2009; the coverage threshold for election workers will be $1,500 in 2010, also unchanged from 2009.