Social Security Administration Announces Updated Wage Base Change for 2018

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The Social Security Administration announced last Monday, November 27, 2017 that the taxable wage base for the Social Security component of FICA taxes has been lowered to $128,400 for 2018. Previously in October, the Social Security Administration announced that the wage base would increase to $128,700 (up from $127,200 in 2017); however, they have since received approximately 500,000 corrected W-2s for 2016. Based on the updated wage information, the Social Security Administration lowered the 2018 taxable wage base to $128,400. The Medicare component of FICA taxes remains at 1.45% of all earnings, and individuals with wages of more than $200,000 ($250,000 for married couples filing jointly, $125,000 for married filing separately) will pay an additional 0.9% in Medicare taxes.

If you would like additional information or to discuss the topics mentioned, please contact Kelley J. Wolfe, CPA at 317-260-4482 or kwolfe@greenwaltcpas.com