The Social Security Administration (SSA) announced that the maximum amount of wages subject to the 6.2 percent Social Security tax in 2018 will rise from $127,200 to $128,700, an increase of slightly more than 1 percent. The 2017 wage base increased more than 7 percent over the 2016 base. This raises the maximum a taxpayer can pay by $93, from $7,776.40 to $7,979.40.
The SSA also announced that Social Security beneficiaries will get a 2 percent cost of living increase. In 2017 the increase was 0.3 percent and in 2016 there was no increase.
VACo Contact: Vicky Steinruck, CPA