Effective January 1, 2020, the U.S. Social Security Administration will increase the maximum earnings subject to the Social Security payroll tax by $4,800 (from $132,900 in 2019 to $137,700 in 2020).
| Tax | 2020 Employer Tax % | 2020 Employee Tax % | 2020 Maximum Earnings Cap | Increase over 2019 |
| Social Security | 6.20% | 6.20% | $137,700 | $4,800 Maximum Earnings Cap |
| Medicare | 1.45% | 1.45% | No Limit | — |
| FICA Rate | 7.65% | 7.65% | — |
Source: U.S. Social Security Administration
Note: Excludes reference to 0.9% employee-paid Medicare tax under a provision of the Affordable Care Act.
Find out how these new regulations compare to the 2019 Payroll Tax Increase and stay up to date on new policies from the U.S. Social Security Administration at the Economic Research Institute. Stay informed on new updates to what is included in payroll tax and other social security benefit changes.
The Internal Revenue Service has announced 2020 IRA contribution limits as well. Learn more about them by taking a look at our post breaking down all of the major changes.
