The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2022. The social security wage base limit is $160,200. Qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2020, and before April 1, 2021, aren't subject to the employer share of social security tax therefore, the tax rate on these wages is 6.2%. The rate of social security tax on taxable wages, including qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee, or 12.4% for both. Social security and Medicare tax for 2023. 15-T to figure withholding on periodic pension and annuity payments. See section 8 for more information about withholding on retirement payments and annuities. Payers should have updated their system programming for these forms in 2022. Although the redesigned Form W-4P and new Form W-4R were available for use in 2022, the IRS postponed the requirement to begin using the new forms until January 1, 2023. Withholding elections for nonperiodic payments and eligible rollover distributions are now made on Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions. Previously, Form W-4P was also used to make withholding elections for nonperiodic payments and eligible rollover distributions. ![]() The new Form W-4P is now used only to make withholding elections for periodic pension or annuity payments. ![]() Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments (previously titled Withholding Certificate for Pension or Annuity Payments) was redesigned for 2022.
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