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).