19-P-006 Change in Social Security Base Rate (October 17, 2018)
Informational Circular No.: 19-P-006
Supersedes Informational Circular No: 18-P-012
Effective Date: January 1, 2019
Contact Name: Carmen Waters
Ph: (785) 296-7059
Approval: Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Increase to $132,900 effective January 1, 2019
The Social Security wage base for OASDI will be $132,900 for calendar year 2019. This is a $4,500 increase from the wage base of calendar year 2018 of $128,400. The OASDI tax rate for 2019 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2019 will be $8,239.80. There continues to be no limit on wages subject to the Medicare tax in 2019. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $8,239.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
Printable Version of 19-P-006