The Social Security Administration announced today, Oct. 15, that 2016 Social Security Payroll Tax, also known as the Old-Age, Survivors and Disability Insurance (OASDI), wage base will remain the same as the 2015 wage base at $118,500.

Thus, the maximum OASDI portion of the Federal Insurance Contributions Act tax payable by each employee in 2016 is $7,347, or 6.2 percent of the wage base.

Employers match the employee amount with an equal contribution.

The wage base amount is determined by the national average wage, which is based on annual wage reports submitted to the SSA, not on cost-of-living increases.

The Advi$or reminds you that for the Medicare (HI) portion of the FICA taxes, there is no taxable wage base and all wages earned are subject to the Medicare tax, which also is paid by employers and employees. Each pays at a 1.45 percent rate, although employees who earn more than $200,000 a year pay an additional 0.9 percent on those wages greater than the $200K.