Appendix A-1: Social Security Wage Bases, Medicare Rates, and Social Security Rates

Social Security Employer and Employee Taxes

  • Wage bases for each year are determined the previous November by the SSA. See the last 10 years' Social Security wage bases.

  • The Medicare wage base has been removed, see below. The Medicare rate applies to all earnings. The Medicare rate applies to employees who are excluded from Social Security coverage who were first employed in these positions after March 31, 1986.

  • A Social Security covered employee will pay Medicare tax on all earnings. The Social Security rates for 1987 through 2024 are shown below. NOTE: Future Social Security rates may be changed by Congress.

Tax Deadlines

  • You must give the W-2 statements to your employees by January 31 of the following year.

  • You must file your W-2 by February 28 of the following year.

 

A. Social Security Wage Base

The annual Social Security wage base is as follows:

Year

Social Security Wage Base

2024

$168,600

2023

$160,200

2022

$147,000

2021

$142,800

2020

$137,700

2019

$132,900

2018

$128,400

2017

$127,200

2016

$118,500

2015

$118,500

2014

$117,000

 

 

B. Medicare Wage Base

The annual Medicare wage base is as follows:

Year

Medicare Wage Base

1994 - 2024

Rate applies to all earnings

1993

$135,000

 

C. Social Security Rates

Same rate used for both employer and employee.

Years

OASDI*

Medicare

Total

*2013-2024

6.20%

1.45%**

7.65%

2011-12 employee

4.20%

1.45%

5.65%

2011-12 employer

6.20%

1.45%

7.65%

*1990 - 2010

6.20%

1.45%

7.65%

*1988 -1989

6.06%

1.45%

7.51%'

*1987

5.70%

1.45%

7.15%

Old Age, Survivors, and Disability Insurance

*Same rate used for both employer and employee

**Beginning in 2013 an additional Medicare tax of 0.9 percent is assessed on earned income exceeding $200,000 for individuals and $250,000 for married couples filing jointly. This additional Medicare tax rate is not reflected in the tax rates shown in the table. Employers will start deducting the additional amount on wages over $200,000.

Federal Income Tax Withholding for IMRF Pension Payments

  • For members who retired on or before December 31, 2021, and did not return a W-4P, the IRS default for withholding is "married with three exemptions." In 2023, the withholding will be taken on pension payments of $2,315.00 or more.

  • For members who retired on or after January 1, 2022, and did not return a W-4P, the IRS default withholding is single with zero adjustments.