Federal Fast Wage and Tax Facts

Federal Tax Facts

Minimum Wage

  • Effective
    7/24/2009
  • Minimum Wage
    $7.25
  • Minimum Cash Wage (Tipped Employee)
    $2.13
  • Maximum Tip Credit
    $5.12
  • Youth Minimum Wage
    $4.25

FICA (Medicare)

  • Maximum Taxable Earnings
    No Limit
  • Employee / Employer Tax Rate (Unchanged from 2017)
    1.45%
  • Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)
    0.90%

FICA (Social Security)

  • Maximum Taxable Earnings (Increased from $127,200 in 2017)
    $128,400
  • Employee / Employer Tax Rate (Unchanged from 2017)
    6.20%

FUTA (Employer-Paid)

  • Maximum Taxable Earnings
    $7,000
  • Percent of Taxable Wages
    6.00%
  • Maximum Credit
    5.40%
  • Normal Net Tax
    0.60%

Supplemental Wage / Bonus Rates

  • Flat Rate Withholding Method (Decreased from 25% in 2017)
    22%
  • Pay over $1 Million (Decreased from 39.6% in 2017)
    37%

Health Savings Accounts

  • Self-Only Contribution Limit (Employee / Employer) (Increased from $3,400 in 2017)
    $3,450
  • Family Contribution Limit (Employee / Employer) (Increased from $6,750 in 2017)
    $6,900
  • Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2017)
    $1,000

Retirement Plans

  • Contribution Limit - 401(k) & 403(b) plans (Increased from $18,000 in 2017)
    $18,500
  • Catch-up Contribution Limit - 401(k) & 403(b) plans (age 50 & older) (Unchanged from 2017)
    $6,000

FAST WAGE AND TAX FACTS is distributed with the understanding that the publisher is not rendering legal, accounting, tax or other professional services. If legal advice or other assistance is required, an attorney, CPA or tax adviser should be consulted. Minimum wage rates may vary by industry and may be superseded by Federal minimum wage rules. Contact the proper agency to verify.

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