23-P-005 Change in Social Security Base Rate (Effective January 1, 2023)
The Social Security wage base for OASDI will be $160,200 for calendar year 2023. This is a $13,200 increase from the wage base for calendar year 2022 of $147,000. The OASDI tax rate for calendar year 2023 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for calendar year 2023 will be $9,932.40. There continues to be no limit on wages subject to the Medicare tax in calendar year 2023. Medicare tax rates for both employees and employers remain at 1.45%.
An additional Medicare tax of 0.9% applies to employees with wages of more than $200,000 and $250,000 for married couples filing jointly. This additional tax 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 $9,932.40 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 and $250,000 for married couples filing jointly, 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 and $250,000 for married couples filing jointly.
The Office of Accounts and Reports, 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.
NR:SGZ:had
Printable Version of 23-P-005
