Social Security Wage Base

The Social Security Administration (SSA) announced on Wednesday, October 19, 2011, that the 2012 social security wage base will be $110,100, an increase of $3,300 from the 2011 wage base of $106,800. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.

The FICA tax rate, which is the combined social security tax rate of 4.2% and the Medicare tax rate of 1.45%, is 5.65% until February 29, 2012. Bills currently being considered in Congress may change this on March 1, 2012.