Thursday, November 13, 2014

SSA Announces 2015 Social Security Wage Base Increase


In late October, the Social Security Administration (SSA) announced that the social security wage base for 2015 will increase to $118,500. This is an increase of $1,500 from the 2014 wage base of $117,000.

This increase isn’t the only one happening in 2015. There is no limit to the wages subject to the Medicare tax. All covered wages are subject to a 1.45% tax. Wages paid in excess of $200,000 continue to be subject to an extra 0.9% Medicare tax. This tax is withheld only from employee wages. Employers do not pay any portion of the extra 0.9% tax.

The 2015 FICA tax rate will be 7.65%. The tax rate is comprised of the 6.2% social security tax rate, plus the 1.45% Medicare tax rate. Individuals will be taxed at this rate up to the social security wage base. The maximum social security tax employees and employers each pay is $7,347. This is an increase for employees and employers of $93 from 2014.

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