Social Security Wage Base Rises to $142,800 for 2021

Oct. 13, 2020, 2:16 PM UTC

The Social Security (Old-Age, Survivors, and Disability Insurance) taxable wage base is to increase to $142,800 for 2021, up from $137,700 for 2020, the Social Security Administration said Oct. 13 in a news release.

The maximum 2021 Social Security component of the Federal Insurance Contributions Act tax payable by each employee is $8,853.60, which is 6.2% of the taxable wage base, up from $8,537.40 for 2020. Employers match the employee amount with an equal contribution.

The Medicare (Hospital Insurance) tax rate remains 1.45% and is applicable to all wages paid during the year. An additional Medicare tax of 0.9% ...

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