2019 Social Security Wage Base and Nanny Threshold

Social Security Wage Base: The maximum amount of wages subject to the 6.2% Social Security tax will rise from $128,400 to $132,900 in 2019. Medicare tax rates and wages bases will remain the same as 2018.

Nanny Tax Threshold: The maximum wages that can be earned by a household employee without being subject to Social Security or Medicare tax, often referred to as the “nanny tax”, will remain at $2,100, the same as it was in 2018. Amounts paid above this threshold to anyone who works in and/or around your home such as babysitters, housekeepers and yard workers, are subject to payroll tax.

About Padgett Team

Our firm is a leader in outstanding accounting, tax payroll and business services. Our dedication to the 3 dominating business requirements of Professionalism, Timeliness and Excellence dictate the day-to day service we provide equally to each client. No small business is too small.

Facing a Tax Audit?
We can Help! Don't Delay!
Contact our Enrolled Agents today!!