Earnings Ceilings and Tax Rates for Social Security and Medicare Taxes (FICA)

TO:     ALL UAW LOCAL UNION FINANCIAL SECRETARIES

The Internal Revenue Service Code sets forth Federal Insurance Contributions Act (FICA) taxes on wages earned.  FICA taxes consist of the Old-Age, Survivors and Disability Insurance tax (OASDI) (referred to as Social Security) and the Hospital Insurance tax (HI) (referred to as Medicare).  These taxes are imposed on both the employer and employee.

The 2019 rate for Social Securtiy tax remains at 6.2% and will be withheld until an employee's gross wages reach $132,900.00.  The employer's share remains 6.2%.

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