The Social Security Administration (SSA) announced this week that the maximum threshold of individual taxable earnings. They have increased that amount to $168,600, up from 160,200 in 2023). This means that employees at or above the wage base will pay $10,453 in social security tax. This is an increase of $521 per person for 2024.
The tax rate remains at 6.2% so individuals who aren’t at the threshold won’t see any difference in their pay.
The Medicare tax rate remains 1.45%. It has no wage limit and the additional tax for earners above $200,000 remains unchanged as well at 0.9%.
The SSA also announced that the cost-of-living adjustment (COLA) for 2024 is 3.2% for both Social Security and Supplemental Security Income benefits.