Social Security Wage Base Increases for 2017

News from RWHSG

Posted by Kim Chen on November 12th, 2016

The Social Security Administration (SSA) announced that the maximum earnings subject to the Social Security component of the FICA tax will increase from $118,500 to $127,200 for 2017. This means that for 2017, the maximum Social Security tax that employers and employees will each pay is $7,886.40 ($127,200 x 6.2%). A self-employed person with at least $127,200 in net self-employment earnings will pay $15,772.80 ($127,200 x 12.40%) for the Social Security part of the self-employment tax. The Medicare component remains 1.45% of all earnings, and individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) will pay an additional 0.9% in Medicare taxes. Other 2017 cost-of-living adjustments announced by the SSA are available at www.ssa.gov/policy/docs/quickfacts/prog_highlights/RatesLimits2017.html .