10/26/2026
The Federal Insurance Contributions Act imposes two taxes on employers and employees: Social Security and Medicare. Each year since 1950, the Social Security Administration has adjusted the wage base for computing Social Security tax. For 2027, it will be $192,300 (up from $184,500 this year). Wages and net earnings from self-employment above this amount aren’t subject to Social Security tax — but there’s no earnings cap for Medicare tax. Additional rules apply to the 0.9% additional Medicare tax, federal unemployment tax, and various state and local taxes. Got questions? Contact us for guidance on complying with all applicable reporting and withholding requirements.
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