Social Security Wage Base Updated for 2018
The 2018 social security wage base will be $128,400, not $128,700 as the Social Security Administration (SSA) previously reported. This is still an increase of $1,200 from $127,200 in 2017. The lower amount is due to approximately 500,000 Forms W-2c (correcting 2016 Forms W-2) submitted to the SSA in late October by a payroll service provider. The updated maximum social security tax employers and employees will each pay in 2018 is $7,960.80. This is an increase of $74.40 from $7,886.40 in 2017. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax. As in 2017, wages paid in excess of $200,000 in 2018 will be subject to an extra 0.9% Medicare tax that will be withheld only from employees’ wages. Employers will not pay the extra tax. A Compliance Update with this information was sent to members on November 28, 2017.