Looks like you’ll be withholding more Social Security tax – and of course, you’ll be paying more, too – come 2017.
The projected wage base for next year is $126,000, up from $118,500, where it’s been since 2015.
That’s a $7,500 increase, one of the biggest jumps ever.
So the maximum tax for employees and employers would go from $7,347 to $7,812.
Announcement in the fall
You can peer even further down the road. That’s because The Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds released additional projections in its annual report. For example:
- 2018 – $129,900
- 2019 – $135,900
- 2020 – $142,500
- 2021 – $148,800, and
- 2022 – $155,100.
In the fall, when SSA announces a final decision about the 2017 taxable wage base, we’ll let you know.
