2019 Social Security Wage Base
For 2019, the Social Security Wage Base figures are $132,900 (Wage base limit) and 6.2% (Employee social security tax rate).
Effective 2019-01-01Source: Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)Verified 2026-09-02
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Wage base limit | $128,400 | $132,900 | +$4,500 (+3.5%) |
| Employee social security tax rate | 6.2% | 6.2% | +0% (+0.0%) |
Who it applies to
Employers and employees subject to Federal Insurance Contributions Act (FICA) taxes, and self-employed individuals subject to Self-Employment Contributions Act (SECA) taxes
What changed this year, and why
The Social Security wage base limit for 2019 is $132,900, up from $128,400 in 2018. The employee tax rate remains 6.2%.
Common questions
- What is the Social Security wage base limit?
- The Social Security wage base limit is the maximum amount of wages subject to the Social Security tax for the year. Wages earned above this limit are not taxed for Social Security.
- How much Social Security tax does an employee pay?
- The employee Social Security tax rate is 6.2%. The employer pays an equal share.
- Does the wage base limit also apply to Medicare tax?
- No. Only the Social Security tax has a wage base limit. Medicare tax applies to all covered wages with no limit.
Only social security has a wage base
For 2019, social security tax is imposed only on wages up to $132,900 per employee. Medicare tax, by contrast, applies to all covered wages with no upper cap. The employee rate for social security is 6.2%, and the employer matches that 6.2%. Because only social security has a wage base limit, once an employee's cumulative wages for the year pass $132,900, no further social security tax is withheld or owed on additional pay, while Medicare tax continues to apply on every dollar. Employers should track each employee's year-to-date wages so they stop withholding social security tax at the correct point. If too much is withheld, the excess is reported on the employee's Form W-2 and claimed as a credit against income tax on the employee's return; the employer cannot simply keep the over-withheld amount.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
An acquisition does not restart the limit
When a corporate acquisition meets certain requirements, wages that the predecessor employer already paid to transferred employees are treated as though the new employer paid them. This applies for purposes of the social security wage base. In practice, the successor does not start the wage base over at zero. Wages earned with the prior owner count toward the $132,900 limit for 2019. Once the combined total reaches $132,900, no further social security tax applies for the rest of the calendar year, even though the employee is now on the successor's payroll. The employee rate for social security is 6.2%, and the employer matches that 6.2%. Without this rule, an employee who switched employers mid-year could end up paying social security tax on wages above the limit twice. The successor employer rule also applies to the Additional Medicare Tax withholding threshold of $200,000 in a calendar year.
Successor employer. When corporate acquisitions meet certain requirements, wages paid by the predeces- sor are treated as if paid by the successor for purposes of applying the social security wage base and for applying the Additional Medicare Tax withholding threshold (that is, $200,000 in a calendar year).
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
When the employer pays the employee's share
When an employer pays the employee's share of social security and Medicare taxes without deducting them from wages, those employer payments are themselves treated as wages subject to social security and Medicare taxes. This means the amounts the employer pays on behalf of the employee are included in the employee's total wages for the year. The employee social security tax rate is 6.2%, and the employer matches that 6.2%. These wages are counted toward the wage base limit of $132,900 for 2019. Once the total wages, including the amounts the employer paid as the employee's share, reach $132,900, no further social security tax applies for the rest of the calendar year. Medicare tax, by contrast, applies to all covered wages with no wage base limit. The employer must still determine withholding for social security and Medicare taxes by multiplying each payment by the employee tax rate, and there are no withholding allowances for these taxes.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
Household employers
For household employees performing domestic service in a private home, the employer must withhold and pay social security and Medicare taxes when cash wages reach a certain threshold. For 2019, social security and Medicare taxes apply if the employer pays total cash wages of $2,100 or more in cash to a household employee during the year. The employee social security tax rate is 6.2%, and the employer matches that 6.2%. These taxes apply only up to the wage base limit of $132,900 for the year. Once wages exceed that amount, no further social security tax applies for the rest of the calendar year. However, social security tax does not apply to wages paid to a household employee who is under age 18 during any portion of the calendar year if household work is not the employee's principal occupation. Medicare tax, by contrast, applies to all covered wages with no wage base limit and no age-based exclusion. The employer must determine the amount of withholding by multiplying each payment by the employee tax rate.
Household employees: 1. Domestic service in private homes. Farmers, see Pub. 51. Exempt (withhold if both employer and employee agree). Taxable if paid $2,100 or more in cash in 2019.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
Who counts as an employee
Under common law, a worker who performs services for an employer is generally considered an employee if the employer has the right to control what will be done and how it will be done. This control test applies even when the employer gives the worker freedom of action in carrying out the tasks. The key factor is not how the relationship is labeled or how payments are measured, but whether the employer has the right to direct the details of how the services are performed. People who are in business for themselves, such as doctors, lawyers, or veterinarians offering their services to the public, are usually not employees under common law. However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. For social security and Medicare tax purposes, the employee social security tax rate is 6.2%, and the employer matches that 6.2%. These taxes apply to wages up to the wage base limit of $132,900 for 2019. Once wages exceed that amount, no further social security tax applies for the rest of the calendar year.
Employee status under common law. Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
The wage base has to line up on Form W-2 and the employer's payroll return
The $132,900 social security wage base limit is the maximum wage subject to the tax for the year. This means that once an employee's wages exceed this amount, no more social security tax should be withheld or paid by the employer. Employers must report the same wage amounts on the employee's annual wage statement that they report on their quarterly payroll tax return. If wages reported on these forms don't match, it can indicate an error in calculating the wage base limit or in withholding the correct tax amount. For 2019, the social security tax rate is 6.2% each for the employer and employee, applied only to wages up to the wage base limit. The employer is responsible for making sure withholding ceases once an employee's cumulative wages for the year hit the limit, so the wage statement and the quarterly return end up agreeing automatically when the payroll is run correctly.
The wage base limit is the maximum wage subject to the tax for the year.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
Withheld social security tax that never reaches the Treasury can cost the responsible person 100%
When social security tax is withheld from employees' pay, it is held in trust for the federal government until it is deposited. Publication 15 warns that if those withheld amounts are never deposited or paid over to the U.S. Treasury, the trust fund recovery penalty applies. The penalty is 100% of the unpaid trust fund tax - meaning the responsible person owes the same amount that should have been sent to the IRS. Crucially, the liability does not stop at the business itself: if the unpaid taxes cannot be collected from the employer, the IRS can impose the penalty on any person it determines was responsible for collecting, accounting for, or paying over the taxes and who acted willfully in failing to do so. A responsible person can be an officer, employee, partner, accountant, or anyone else with authority over the payroll decisions. For 2019, because the 6.2% employee share of social security tax stops at the $132,900 wage base, the trust fund that must be preserved is the tax on wages up to that cap; once it is withheld, keeping it out of the Treasury is what triggers the penalty.
Trust fund recovery penalty. If federal income, social security, or Medicare taxes that must be withheld (that is, trust fund taxes) aren't withheld or aren't deposited or paid to the U.S. Treasury, the trust fund recovery penalty may apply. The penalty is 100% of the unpaid trust fund tax. If these unpaid taxes can't be immediately collected from the employer or business, the trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, or paying over these taxes, and who acted willfully in not do- ing so.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
- Wage base limit
For 2019, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% to- tal). The social security wage base limit is $132,900.
- Employee social security tax rate
For 2019, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% to- tal).