Vision Payroll

This week’s question comes from Roseanne, a payroll manager. When will the 2009 Social Security wage base be announced? Answer: The US Department of Labor has just announced that the 2009 Social Security Wage Base will increase by $4,800 to $106,800. Since wages are taxed at a rate of 6.2%, the maximum tax to be paid by each employee will therefore increase to $6,621.60 or an increase of $297.60. The increase impacts about 7% of workers who pay Social Security Tax. Vision Payroll will automatically update its system for 2009 to reflect the higher wage base.