2019 Tax Changes

2019 Tax Changes

2019 Tax Changes

  • The social security wage base limit has increased from $128,400 to $132,900. Based on this new amount, the maximum social security tax payable by each employee is $8,239.80, or 6.2% of the wage base.

  • The annual withholding allowance amount has increased from $4,150 to $4,200.

  • The 2019 Form W-4, Employee’s Withholding Allowance Certificate, can be viewed at http://www.irs.gov/pub/irs-pdf/fw4.pdf. The Treasury Department and the IRS will incorporate important changes into a new version of the Form W-4 for 2020, while the 2019 version of the Form W-4 is similar to the 2018 version.

    Other useful tax information:

  • The flat tax rate for withholding income tax from supplemental wages remains at 22% and at 37% for supplemental wages over $1 million.

  • Federal income withholding tax brackets remain at 10, 12, 22, 24, 32, 35, and 37%. Please see the following document for more information – Figuring Your Federal Taxes.

  • The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” This withholding calculator may help employees ensure that an adequate amount of tax is withheld from paychecks each pay period, and is located at http://www.irs.gov/individuals/irs-withholding-calculator.