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November 5, 2018

2019 Social Security Cost-of-Living Adjustment (article)

On October 11, 2018, the Social Security Administration announced a 2.8 percent cost of living adjustment for 2019. 

The Social Security wage base in 2019 will increase to $132,900, from the 2018 wage level of $128,400.  The combined Social Security and Medicare 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.  The Internal Revenue Service provides a set of FAQs explaining the additional tax.

Additional adjustments are included in the SSA’s Fact Sheet: 2019 Social Security Cost-of-Living Adjustments.

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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.

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