Social Security Tax
- For 2018, the employee tax rate for Social Security is 6.2%
- The Social Security Wage Base Limit is $128,400 for 2018; Social Security Tax will only be collected on the first $128,400 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, 2018, the standard mileage rates for the costs of operating a car for business purposes are:
- 54.5 cents per mile per business miles driven (an increase of 1 cent from 2017)
- 18 cents per mile driven for moving expenses (an increase of 1 cent from 2017)