Federal Tax and Reimbursement Rates

Social Security Tax 

Medicare Tax

The Medicare tax rate will remain at 1.45%; there is no wage base limitfor Medicare tax. THe 0.9% Additional Medicare Tax will be withheld from the wages of those earning more than $200,000 in a calendar year.

Mileage Reimbursement

Effective January 1, 2016, the standard mileage rates for the costs of operating a car for business purposes are:

  • 54 cents per mile per business miles driven (a decreased of 3.5 cents from 2015)
  • 19 cents per mile driven for moving expenses (a decrease of 4 cents from 2015)