Social Security Wage Base Remains the Same

Social Security Wage Base Remains the Same for 2016

The Social Security Administration (SSA) announced that the maximum earnings subject to the Social Security component of the FICA tax will remain at $118,500 for 2016.

This means, that for 2016, the maximum Social Security tax that employers and employees will each pay is $7,347 ($118,500 x 6.2%), and a self-employed person with at least $118,500 in net self-employment earnings will pay $14,694 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 2016 cost-of-living adjustments announced by the SSA are available at www.ssa.gov/news/press/factsheets/colafacts2016.html .