The Social Security Administration has announced that the wage base for computing the Social Security tax in 2015 will increase to $118,500 from $117,000, which was the wage base for 2014.
For 2015, the FICA tax rate for employers is 7.65% each—6.2% for social security and 1.45% for medicare. For 2015, an employee pays:
- 6.2% Social Security tax on the first $118,500 of wages with a maximum tax is $7,347.00, plus
- 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus
- 2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all wages in excess of $200,000; $250,000 for joint returns; $125,000 for married taxpayers filing a separate return.
For 2015, the self-employment tax imposed on self-employed people is:
- 12.4% Social Security tax on the first $118,500 of self-employment income, for a maximum tax of $14,694.00; plus
- 2.90% Medicare tax on the first $200,000 of self-employment income; $250,000 of combined self-employment income on a joint return, $125,000 on a separate return, plus
- 3.8% (2.90% regular Medicare tax + 0.9% additional Medicare tax) on all self-employment income in excess of $200,000; $250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing a separate return.