The Small Business 2018 Wage and Tax Guide

Employee and business owner looking at 2018 wage and tax information for e-filing withholding taxes

If you are a small business, we understand that wrapping your mind around all of your c obligations can be challenging. PayWow is here to help your small business navigate your IRS tax needs. Here is your small business 2018 wage and tax guide to help your business prepare for the new tax season.


The Small Business 2018 Wage and Tax Guide

Federal Payroll Tax Guide

Minimum Wage

Minimum Wage $7.25
Minimum Cash Wage (Tipped Employee) $2.13
Maximum Tip Credit $5.12
Youth Minimum Wage $4.25


FICA (Medicare)

Maximum Taxable Earnings No Limit
Employee/ Employer Tax Rate  (Unchanged from 2017) 1.45%
Additional Medicare Tax Withholdings on Wages >$200,000 (No Employer Match) 0.9%


FICA (Social Security Tax)

Maximum Taxable Earnings $128,400
Employee/Employer Tax Rate 2.3%


FUTA (Employer-Paid)

Maximum Taxable Earnings $7,000
Percent of Taxable Wages 6.0%
Maximum Credit 5.4%
Normal Net Tax 0.6%


Supplemental Wage/ Bonus Rates

Flat Rate Withholding Method 25%
Pay Over $1 Million 39.6%


Health Savings Accounts

Self-Only Contribution Limit $3,450
Family Contribution Limit $6,900
Catch-Up Contribution Limit $1,000


Retirement Plans

Contribution Limit $18,500
Catch-up Contribution Limit $6,000


State Payroll Tax

South Carolina Tax Guide

State Income Tax

Wage Withholding Tables
Supplemental Wage/ Bonus Rate 7.0%


Unemployment Insurance

Maximum 2018 Taxable Earnings $14,000
Employee Deduction None
Employer 2018 Tax Rate 0.06 – 5.46%
Standard 2018 New Employer Rate 1.09%
Voluntary Contribution Permitted No


Disability Insurance

Employee Deduction None


Business owner calculating 2018 wage and tax owedWe hope you found this blog helpful and informative. Share this blog and comment below with any questions for our expert payroll specialists. As always, we at PayWow take pride in providing you with a safe, secure, and accurate payroll processing and e-filing that saves you time and money.



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