Social Security Tax
- For 2016, the employee tax rate for Social Security is 6.2%
- The Social Security Wage Base Limit is $118,500 for 2016; Social Security Tax will only be collected on the first $118,500 earned
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.
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)