2017 Social Security Limits have been issued

Social Security wage base increases next year. The Social Security Administration (SSA) announced that the maximum earnings subject to Social Security tax will increase from $118,500 to $127,200 in 2017. Next year, an employer must withhold 6.2% Social Security tax on the first $127,200 of employee wages and 1.45% Medicare tax on the first $200,000 of employee wages. On employee wages in excess of $200,000, employers must withhold 2.35% Medicare tax (regular 1.45% Medicare tax plus 0.9% additional Medicare tax).