IRS Announces Increase in Social Security Tax Wage Base for 2014
~ Co-author Joni Mattei – Deluzio and Company para professional ~
The IRS has announced that the projected Social Security tax wage base will increase from the 2013 limit of $113,700 to $115,500 for 2014. The Federal Insurance Contributions Act (FICA) imposes two taxes: 12.4% Social Security tax and 2.9% Medicare tax. Wage or salaried employees pay half of this tax thru paycheck withholdings while employers pay the other half. The increase in the Social Security tax wage base means employees will pay Social Security tax on a larger portion of their wages. Employers will also pay more, through their half of the tax payments. Complete details can be viewed at www.ssa.gov. If you have any questions, please feel free to contact our office.