On October 22, 2014, the Social Security Administration (SSA) announced an upward cost-of-living adjustment for the Social Security taxable wage limit. For calendar year 2015, the amount of earnings taxable for Social Security (Old Age, Survivors and Disability Insurance, or “OASDI”) will increase from $117,000 to $118,500. The employee and employer tax rate will remain unchanged at 6.2%. With this increase in taxable wages, the maximum Social Security tax payable by an employee will be $7,347.00, an increase of $93.00 from the current maximum tax of $7,254.00. Employers will match the employee’s tax.
In 1993, the Omnibus Budget Reconciliation Act removed the taxable wage limit for the Medicare tax beginning in 1994 and years thereafter. Therefore, there is no maximum employee or employer contribution amount for Medicare tax for 2015. All covered wages will be subject to Medicare tax at a rate of 1.45%. Employers will match the employee’s tax.
Read full article FICA Wages Limits & Pension Plan Limitations For 2015
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