The Social Security Administration (SSA) has declared that the Social Security Wage Base will increase in 2017, resulting in an overall rise in Federal Insurance Contribution Act (FICA) taxes.
Next year the maximum taxable gross income will change from $118,500 to $127,200. It is anticipated that roughly 12 million workers will be expected to pay more into the system due to this change.
Employees will continue to contribute 6.2% of their earnings toward Social Security, with an employer match. The maximum employee/employer share will be $7,886.40, increasing from $7,347.00 in 2016. The additional Medicare tax of 0.9% for employees making over $200,000 is unchanged for 2017.
More information regarding Social Security changes for 2017 can be found on the SSA website.
Valiant Solutions provides payroll and HR software with expert guidance for the large hourly workforce. We also offer continual updates on current and upcoming regulations, keeping your operations running smooth and free of costly compliance mistakes. Contact us today to receive a free consultation from one of our experts.