Thursday, July 14, 2016

Social Security Wage Base Expected to Increase in 2017

PNN: Social Security Wage Base

The Board of Trustees of the Social Security Trust Fund reports each year on the financial condition of the social security program. The 2016 report is now available on the Social Security Administration’s website.

Wage Base Projections
Using “intermediate” forecasting assumptions (described as “best estimates”) and projecting out 10 years, the report estimates that the social security wage base will be $126,000 in 2017. This is up from this year’s $118,500. By 2025, wage base is expected to increase to $175,200.

In addition to the “intermediate” forecasting, the report also projects possible wage bases under a “low-cost set of assumptions,” and a “high cost set of assumptions.” These forecasts project a possible range for the wage base in 2017, from $118,500 (high-cost) to $126,000 (low-cost). Note: These numbers are only estimates. The formal announcement of the 2017 wage base will not come until mid-October.

Social Security Wage Base

Read more about the report, including projections on the long-term solvency of the social security trust funds, in PAYROLL CURRENTLY, Issue No. 7, Vol. 24. Check back with Pay News Now as we will report the official wage base when it is announced in October.