Social Security Wage Base Increase

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October 14, 2012
Virginia Will Require Electronic Filing of Corporate Forms and Payments Beginning 1/1/13
October 29, 2012

Social Security Wage Base Increase

 

By Sabra Houston

The Social Security Administration (SSA) has announced that the 2013 social security wage base will be $113,700, an increase of $3,600 from the 2012 wage base of $110,100.  There is no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax. Wages paid in excess of $200,000 in 2013 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.

Note that the 2012 FICA tax rate is 4.2% for employees and 6.2% for employers under the Middle Class Tax Relief and Job Creation Act of 2012, and that the rate is scheduled to be 6.2% for both employees and employers in 2013. However, bills currently being considered in Congress may change this.

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