2023 tax rates can be found below for Federal Social Security and Medicare for New Jersey and Pennsylvania.
Effective January 1 of each year, all yearly limits are reset and all applicable deductions for these taxes will start again until the limits are met.
The Social Security tax rate for team members will remain 6.2% through the end of 2023, with maximum taxable earnings increasing to $160,200.
The Medicare tax rate is 1.45% with no maximum wage-base limit. Wages paid in excess of $200,000 are subject to an additional 0.9% Medicare tax.
Changes in NJ Disability and Family Leave contributions for 2023:
- NJ Disability and Family Leave wage limit will increase to $156,800 from $151,900 in 2022.
- NJ Employee Disability rate decreased to .00%. from .0014% in 2022.
- NJ Family Leave Act rate is .0006% down from .0014%.
- NJ Unemployment wage limit will increase from $39,800 to $41,100. Rates will remain the same from 2022.
Pennsylvania rates for 2023:
- PA State Personal Income Tax rate will remain 3.07% on all wages.
- PA State Unemployment Tax rate will remain .0007% on all wages (for team members working 100% of the time in PA only).
- City of Philadelphia Wage Tax rate is 3.79% on all wages for Philadelphia residents.
*** All rates are subject to change based on Federal and State Updates. ***
Additional payroll tax information can be found on the Pulse under Departments/Finance/Payroll.