Updated Social Security Wage Base for 2023

The Social Security Administration announced on October 17, 2022, that the maximum earnings subject to the Social Security component of the FICA tax will increase from $147,000 to $160,200 for 2023. This means that employers and employees will each pay $9,932.40 for the Social Security Tax, computed at $160,200 x 6.20%. The Medicare component remains 1.45% on the first $200,000 of wages, plus an additional 0.9% of Medicare tax on all employee wages in excess of  $200,000.

The amount of earnings that is required in order to be credited with a quarter of Social Security coverage will increase from $1,510 to $1,640.