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Federal Limits: What’s Changing in 2016

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As an employer, are you aware of the federal limits that need to be followed for Social Security (also known as Old-Age, Survivors, and Disability Insurance) and Supplemental Security Income (SSI)? Here’s what you need to know as your business looks ahead to 2016:

  • The social security maximum taxable earnings will remain the same as 2015 at $118,500.
  • The social security tax rate will remain at 6.2 % for employees and employers.
  • Medicare maximum taxable earnings remain unlimited.
  • The estimated maximum employer and employee social security contributions will remain the same as 2015 at $7,347.
  • Medicare tax rates also remain the same as 2015, and are as follows:
    • Employer rate: 1.45%
    • Single employee withholding rate: 1.45% on wages <$200,000
    • Single employee withholding rate: 2.35% on wages >$200,000 (1.45% + 0.9%).

 

This information can also be accessed on the Social Security Administration’s website.

 

Learn More about ADP Employment Tax

 

 

Learn More About ADP SmartCompliance® Tax Credits

 


14 comments on “Federal Limits: What’s Changing in 2016”

  1. Jean Nathanson says:

    Please send me more information about this.

  2. do retire’s get a raise this ywar

  3. Joe Kyle says:

    At the start of the article it was stated that information about changes in Medicare would be given. I was unable to find information about the changes in Medicare for 2016. Please send me information about changes in Medicare for 2016 or please send me directions on how I can find it my self. Thanks, Joe M. Kyle

  4. behrouz rafii Mr says:

    my medicare section b has been approved effective
    11-01-2015.
    in regard to my section a, i have been told, i should
    apply during months of Jan trough March 2016.
    the reason as said is that i have
    been eligible for section a since nov. of ten years
    ago but i have not applied for it on time. could you tell me what i can do in the meantime.

  5. Thank you for offering this information on social security

  6. Gary Featherly says:

    At 80 years of age, can I still work with out adversely affecting my income from Social Security? If so, what are the limits?

  7. mary monreal says:

    Want more information

  8. Eileen Libens says:

    Do I have an increase in my SS benefits? I am 73 and still working.

  9. Eileen Libens says:

    I am still working and am 73, am I entitled to an increase in my Social Security benefits?

  10. thomas vagadori says:

    The formula for the max taxable rate at $118.000 needs to be increased. Why is it so difficult to get this done? Everyone knows this to keep S.S. solvent but nothing gets done. Why not try being proactive instead of reactive. The formula is completely outdated.

  11. John C & Brenda M Trusdell says:

    Our comments are as follows. It seems to me that those who make decisions about millions of Americans on Social Security are being are being very narrow minded. For many of us this is the only income we have and both John and I have worked hard most of our lives. It appears that the Washington elite are more interested in spending our money for what ever they want. I would suggest that Social Security be cancelled for the Washington employes as they have had good money while they worked in Washington.

  12. Komal says:

    Good to knowe new rulls and regulation. Try to understand.it complycated

  13. S.S. Is a joke. Made for a good cause and a good reason. BUT, the politicians raise the age, so we die before we can have our own money. It is ours, not theirs. OUR money should be treated as though it is in a bank. If I die before I collect everything the school yard bully stealing my lunch money And is properly disburses it to me than I should be able to leave it to my family or person(s) of my choice.

    Ret SGT David Fletcher
    American tired of being legally stolen from.
    We The People left England because of this EXACT TYRANNY.

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