2017 Social Security Wage Base Announced
The Social Security Administration has announced that the 2017 social security wage base will be increased. The new base will be $127,200, up from the 2016 wage base of $118,500. As in prior years, there is no limit to the wages subject to Medicare; therefore all covered wages are still subject to the 1.45% tax. As in 2016, wages paid in excess of $200,000 in 2017 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
The combined FICA tax rate will be 7.65% for 2014 (6.2% for social security and 1.45% for Medicare).