Social Security Adjustments Announced for 2015

Social Security Benefit Increase

The Social Security Administration announced a 1.7% increase for benefits in 2015 due to a cost-of-living (COLA) adjustment.

Social Security Wage Base Increase

Based on an increase in average wages, the Social Security Administration announced a 1.3% increase in the 2015 wage base for computing the Social Security tax (OASDI). In 2015, the base will be adjusted to $118,500, just $600 shy of the projected amount.

Employees are subject to a 6.2% OASDI tax on the first $118,500 earned.

How does this look in the real world? If an employee earns $118,500 in 2015, the employee and the employer each will pay about $7,347 in OASDI taxes.

Source: www.ssa.gov; Social Security Administration Press Release

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