2017 Social Security Cost-of-Living Adjustment (article)
The Social Security Administration announced a slight (0.3%) cost of living adjustment for 2017.
The Social Security wage base in 2017 will increase to $127,200 from the 2016 wage level of $118,500. The Medicare tax is generally assessed on all wages. The combined tax rate remains at 7.65% - the Social Security portion is 6.2% on wages up to the applicable maximum taxable amount; the Medicare portion is 1.45% on all wages.
As a reminder, the Affordable Care Act imposes an additional 0.9% Medicare tax on high wage earners, applicable on earnings in excess of $200,000 in a calendar year.
Additional adjustments are included in the SSA’s Fact Sheet: 2017 Social Security Cost-of-Living Adjustments.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.