The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, will be 7.65% for 2014 up to the social security wage base. The maximum social security tax employees and employers will each pay in 2014 is $7,254. This will be an increase of $204.60 for employees and employers.
The social security wage base for self-employed individuals in 2014 also will be $117,000. There is no limit on covered self-employment income that will be subject to the Medicare tax. The self-employment tax rate will be 15.3% (combined social security tax rate of 12.4% and Medicare tax rate of 2.9%) up to the social security wage base. In 2014, the maximum social security tax for a self-employed individual will be $14,508.
FICA coverage threshold for domestic, election workersThe threshold for coverage under social security and Medicare for domestic employees will be $1,900 in 2014, up from $1,800 in 2013; the coverage threshold for election workers will be $1,600 in 2014, unchanged from 2013.
