Articles

Social Security Administration Rings in New Year with Changes to Taxable Wages and Benefits By Kenneth Strauss


Posted on January 09, 2014 by

Effective January 1, 2014, the maximum amount of earnings subject to Social Security tax increases to $117,000 from $113,700 in 2013. The employer and employee Social Security tax rate remains unchanged at 6.2 percent, as does the Medicare tax, which remains at 1.45 percent. However, individuals with earned income of more than $200,000, or $250,000 for married couples filing jointly, will continue to pay the additional 0.9 percent in Medicare taxes implemented last year, which employers will not match.

 

Additionally, with the New Year, Social Security and Supplemental Security Income recipients will gain a 1.5 percent cost-of-living increase in the benefits they receive.