A taxable wage base limit is the amount of wages that are subject to taxes in a given time period. Once an employee has hit the wage base limit for a tax, the employee and/or employer are no longer responsible for paying that specific tax in the current year.
Note: Wage bases will reset each time an employee gets a new employer.
These common payroll taxes have annual wage base limits per employee:
- Social Security: $176,100 (for 2025)
- For 2024: $168,600
- Federal unemployment tax act (FUTA): $7,000
- State unemployment insurance (SUI): varies by the state
- Reminder: Employees moving states affects wages bases and state unemployment insurance (SUI) taxes.
Lattice will stop applying a tax for an employee on payroll once the year-to-date wages hit the wage base limit.
At the start of the next year, Lattice will reset the year-to-date amount so that the tax is applied again until the annual wage base limit is met.