The Social Security Administration (SSA) announced Thursday, Oct. 10, that the 2020 Social Security wage base will be $137,700, which is an increase of $4,800 from $132,900 in 2019; view the SSA fact sheet. As in prior years, there's no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax. As in 2019, wages paid in excess of $200,000 in 2020 will be subject to an extra 0.9% Medicare tax that will be withheld only from employees' wages; employers won't pay the extra tax. The FICA tax rate, which is the combined Social Security tax rate of 6.2% and the Medicare tax rate of 1.45%, will be 7.65% for 2020 up to the Social Security wage base. The maximum Social Security tax employees and employers will each pay in 2020 is $8,537.40, an increase of $297.60 from $8,239.80 in 2019.