Increase Archives | H&S Companies

Employers who handle payroll in-house will need to be sure to adjust their employees’ paychecks accordingly.

On October 16^th, the Social Security Administration announced that the taxable wage base would increase from $110,100 to $113,700. This means that employees will pay the following on taxable income:

6.2% social security tax on taxable income up to $113,700:
1.45% Medicare tax (aka Hospital Insurance) for the first $200,000 of taxable income
2.35% Medicare tax on taxable income over $200,000

Employers who handle payroll in-house will need to be sure to adjust their employees’ paychecks accordingly.

Questions? Contact Melissa Miller, payroll specialist.

Melissa Miller
Payroll Specialist
231.924.8052
melissam@hscompanies.com

The Social Security Administration’s intermediate forecast for wage base increases through 2020

The Social Security Office of the Chief Actuary is projecting that the Social Security wage base will increase in 2013. Currently, wage earners are required to pay Social Security tax on wages earned up to $110,100. The base is expected to increase to $113,700 in 2013. The graph to the right shows the Social Security Administration’s intermediate forecast for wage base increases through 2020. Please keep in mind, these forecasts are subject to change because the actual annual increases are released each October for the upcoming year, and are based on economic conditions at the time.

Additionally, the Chief Actuary projected that Social Security will run out in 2033, rather than 2036, as previously expected. This conclusion is based on a number of factors including the aging baby boomers and the increase in life expectancy.

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