Cost of Living adjustments have caused the taxable wage base limits to adjust each year increasing the taxable wage base since 1975. However, this is the second year that the current wage base of $106,800 will remain the same (2010 and 2011). With the wage base unchanged, the maximum OASDI tax payable by an employee will remain at $6,621.60 or 6.2% of the wage base.
The Medicare portion of the Federal Insurance Contributions Act (FICA) will also remain the same at 1.45% of all taxable wages earned.
For the latest upcoming news affecting your taxation feel free to contact Payce at 800-729-5910.