Social Security and Medicare Withholding Rates

Tax rates and the social security wage base limit.

Social security and Medicare taxes have different rates and only the Social Security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year. There are no withholding allowances for Social Security and Medicare taxes.

For 2024, the Social Security tax rate remains at 6.2% for both the employer and employee (12.4% total). The Social Security wage base increases to $168,600, a 5.3% increase over 2023. The tax rate for Medicare is 1.45% for both for the employee and employer (2.9% total). There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax.

Additional Medicare Tax withholding. In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.

2024 Standard Mileage Rate

The IRS has announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2024 will be 67 cents per business mile.

2024 OHIO MINIMUM WAGE

As of January 1, 2024, Ohio's minimum wage is $10.45 per hour. The minimum wage for tipped employees is $5.25 per hour. The new minimum wage will apply to employers grossing over $385,000 in revenues per year.

OHIO BUREAU OF WORKERS’ COMPENSATION NOW OFFERS GROUP COVERAGE FOR START-UP COMPANIES

The Bureau of Workers Compensation (BWC) has an incentive program entitled The Grow Ohio Incentive Program. Ohio employers who enroll for the incentive program will be able to receive one of the two premium discount options listed below:

1. The opportunity to join a group-experience-rating program and receive a maximum workers’ compensation (53%) premium discount throughout the year (effective on their first day of coverage).

2. An automatic 25% discount on their workers’ compensation premiums.
Click here to read more details on the Grow Ohio Incentive Program.

QUALIFIED PLANS

*Individuals who will be at least age 50 by the end of the year can make catch-up contributions

HEALTH SAVINGS ACCOUNTS (HSA'S)

**Individuals who will be at least age 55 by the end of the year can make catch-up contributions