2026  Payroll Rates and Bases
Employee Social Security and Medicare 6.20% / 1.45%
Employer Social Security and Medicare 6.20% / 1.45%
Social Security Wage Limit $184,500
Medicare Wage Limit  Unlimited
FUTA (Federal Unemployment Tax Act) taxable wage base  $7,000
FUTA rate  6.0%
FUTA maximum credit    5.4%
Minimum FUTA deposit rate    .6%
*Withhold added Medicare tax rate of .9% on wages over $200,000.
2026 Qualified Retirement Plan Limits
Pretax contributions for 401(k)and SEP plans $24,500
Workers aged 50 and over (Catch-up)  $8,000
Combined employer/employee pay-in limits for all defined contribution plans $72,000
Annual compensation limit under Sec. 401(s)(17) and Section. 404(1) $360,000
Sec. 408(k)(3)(c) IRA, SEP or
SIMPLE plan limits $360,000
SIMPLE pretax contribution limit $17,000
Workers aged 50 and over (Catch-up)  $4,000