The Social Security Administration announced a 5.9% cost of living adjustment for 2022. The Social Security wage base in 2022 will increase to $147,000 from the 2021 wage level of $142,800. 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. Additional adjustments are included in the SSA’s Fact Sheet, 2022 Social Security Changes.
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. A set of FAQs about this additional tax is available from the IRS.
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