1. Update Payroll Systems
Verify your payroll software has updated its tax tables to reflect the new Social Security wage base, state SUI tax rate notices, and local withholding changes.
Compare Automated Software →Track official IRS developments, annual Social Security wage base changes, standard mileage rates, and employment tax regulatory announcements in one place.
Review critical statutory rates and inflation-adjusted limits affecting 2026 payroll runs:
| Provision | 2026 Limit / Standard | Prior Year | Impact on Employers |
|---|---|---|---|
| Social Security Wage Base | $176,100 | $168,600 | Maximum OASDI tax is $10,918.20 each for employer and employee. |
| Medicare Tax Rate | 1.45% (Uncapped) | 1.45% (Uncapped) | No limit on covered wages; matched 50/50 by employer. |
| Additional Medicare Tax Threshold | $200,000 Single / $250,000 MFJ | $200,000 / $250,000 | 0.9% employee withholding on excess; no employer match. |
| FUTA Taxable Wage Base | $7,000 per employee | $7,000 per employee | Effective rate 0.6% ($42 max per employee) with timely SUTA credit. |
| 401(k) / 403(b) Elective Deferrals | $23,500 ($31,000 with age 50+ catch-up) | $23,000 ($30,500) | Pre-tax retirement withholding limit adjusted for inflation. |
| Health Savings Account (HSA) Limit | $4,300 Single / $8,550 Family | $4,150 / $8,300 | Exempt from federal income tax and FICA when pre-tax. |
Headlines pulled directly from official IRS public releases:
Official headlines only, not interpreted tax advice.
Verify your payroll software has updated its tax tables to reflect the new Social Security wage base, state SUI tax rate notices, and local withholding changes.
Compare Automated Software →Remind employees to submit a revised Form W-4 if their personal or financial situation changed, ensuring withholdings match their expected tax liability.
Download Form W-4 →Every year, state unemployment departments mail an annual experience rate notice. Make sure this updated rate is entered into your payroll processor immediately.
Explore State Guides →