Home  /  About  /  Contact Us  /  Shopping Cart  

Preview / Hot News

► 2019 Social Security Wage Base And Cost Of Living Increases

The Social Security Administration has announced a new wage base ceiling and a hike in the cost-of-living for next year. The maximum wage base for Social Security tax will be $132,900 in 2019, up from $128,400 in 2018, the U.S. Social Security Administration (SSA) announced October 11.

The wage base is the maximum amount of an individual’s gross income that can be subject to Social Security tax on the employer and employee. This adjustment was made to reflect an increase in average wages, according to an SSA statement.

Employers and employees each pay a Federal Insurance Contributions Act (FICA) tax comprising a Social Security tax of 6.2% on the employee’s earnings up to the wage base, plus a Medicare tax of 1.45% on all earnings. Under the new wage base, the maximum possible Social Security tax will be $8,239.80 (up from $7,960.80 in 2018).

Other changes announced by the SSA include a 2.8 percent cost-of-living increase in Social Security benefit payments, as well as increases in the retirement earnings test exempt amounts and the Social Security disability thresholds.

[10/2018]

 

< Back

 

Be Bound By