2018 taxable wage base released: Here’s how much higher it will go

The taxable wage base is the annual update Finance staffers need most — and now it has arrived.

The Social Security Administration (SSA) just the update for next year.

For 2018, the taxable wage base will sit at $128,700. That’s a $1,500 increase over the current threshold.

So the maximum amount Payroll can withhold from any employee will be $7,979.40.

Better received than last year

This news will likely elicit fewer moans and groans from employees who endured a historic-high hike going from 2016 into 2017.

(It’s estimated some 12 million workers will pay more thanks to this latest increase.)

You still have a month to go before you’ll need the new threshold, but it’s a good idea to make sure Payroll knows ASAP so it can get the changes into the new system and be ready to go the minute the clock strikes 12 on January 1.

To read the SSA’s announcement, go to ssa.gov/news/press/releases/#/post/10-2017-1

Jennifer Azara

Jennifer, a member of the CFO Daily News staff, has covered business and finance for more than 22 years. She has written for CFOs, credit and collections professionals and accounts payable practitioners and has spoken at industry conferences on sales and use tax compliance.