Updated Social Security Wage Base for 2018
Based on an announcement by the Social Security Administration on October 13, 2017, we previously reported to you that the maximum earnings subject to the Social Security component of the FICA tax would increase from $127,200 to $128,700 for 2018.
On November 27, 2017, based on updated data, the Social Security Administration revised the 2018 taxable wage base subject to Social Security by lowering it to $128,400. This means that employers and employees will each pay $7,960.80. A self-employed person will pay $15,921.60. The Medicare component remains 1.45% on all earnings. Individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly, and $125,000 for married filing separately) will pay an additional 0.9% in Medicare taxes.