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Listed below are the maximum taxable earnings for Social Security by year from 1937 to the present. Year Maximum Taxable Earnings 1937-1950 $3,000 1951-1954 $3,600 1955-1958 $4,200 1959-1965 $4,800 1966-1967 $6,600 1968-1971 $7,800 1972 $9,000 1973 $10,800 1974 $13,200 1975 $14,100 1976 $15,300 1977 $16,500 1978 $17,700 1979 $22,900 1980 $25,900 1981 $29,700 1982 $32,400 1983 $35,700 1984 ...
[5] For 2011 and 2012, the OASDI tax rate on wages for employees and self-employed individuals is reduced from 6.2% to 4.2%. The OASDI tax rate on employers remains at 6.2%. [6] Amounts for 1937-74 and for 1979-81 were set by statute; all other amounts were determined under automatic adjustment provisions of the Social Security Act.
It is also the maximum amount of covered wages that are taken into account when average earnings are calculated in order to determine a worker's Social Security benefit . In 2020, the Social Security Wage Base was $137,700 and in 2021 was $142,800; the Social Security tax rate was 6.20% paid by the employee and 6.20% paid by the employer. [1 ...
We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2024, this base is $168,600. The OASDI tax rate for wages paid in 2024 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $168,600 ...
For 1951-78, the amount of Social Security covered earnings needed for a year of coverage is 25 percent of the contribution and benefit base. For years after 1978, the amounts are 25 percent of what the contribution and benefit base would have been if the 1977 Social Security Amendments had not been enacted (hence the name "old-law" base).
Year"old-law"contributionand Benefit BaseSpecial Minimumprimary Insurance AmountBenefit Computations Applicable To ...2024125,10018,76531,2752023118,80017,82029,7002022109,20016,38027,3002021106,20015,93026,550Feb 11, 2013 · 1301.2 How is the maximum wage amount increased each year? For the years after 1981, the maximum wage amount is usually increased by Congress. If Congress does not increase the maximum amount, it is automatically increased in multiples of $300 if there is a cost-of-living increase in Social Security benefits. The increased amount is officially ...
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They also increased the earnings limit from $15 to $50. The 1950s also saw the vast expansion ofSocial Security, and an additional 10 million people, including many self-employed individuals, gained Social Security coverage. The earnings test for the self-employed was set at $600 per year initially, but in 1952 that jumped to $900 per year.
