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- OASDI uses the following numbers to calculate the 2024 Social Security Wage Base: 1994 Wage Base (used for any year after 1994) – $60,600 1992 Average Wage Index – $22,935.42 2022 Average Wage Index – $63,795.13
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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. A person with $10,000 of gross income had $620.00 withheld as Social Security tax from his check and the employer sent an additional $620.00. A person with $130,000 of gross ...
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.
YearMaximum Taxable Earnings2024$168,6002023$160,2002022$147,0002021$142,800For 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 would contribute $10,453.20 to the OASDI program in 2024, and his or her employer would contribute the same amount.
Nov 27, 2023 · The 2024 Social Security wage base is $168,600, up from the 2023 limit of $160,200. After an employee earns above the annual wage base, do not withhold money for Social Security taxes. And, don’t contribute anything else. Not all employees will earn above the withholding limit.
Feb 11, 2013 · Maximum Earnings. Year. Maximum Earnings. 2013. $113,700. 1988. $45,000. 2012. $110,100. 1987. $43,800. 2011. $106,800. 1986. $42,000. 2010. $106,800. 1985. $39,600. 2009. $106,800. 1984. $37,800. 2008. $102,000. 1983. $35,700. 2007. $97,500. 1982. $32,400. 2006. $94,200. 1981. $29,700. 2005. $90,000. 1980. $25,900. 2004. $87,900. 1979. $22,900 ...
YearMaximum EarningsYearMaximum Earnings2013$113,7001988$45,0002012$110,1001987$43,8002011$106,8001986$42,0002010$106,8001985$39,600For 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).
In the 1939 amendments to the Social Security Act, they defined “regular employment” as having earnings of less than $15 in one month. How the Earnings Limit Evolved Over Time. By the late 1940s, post-WWII wages rose and the $15 earnings limit became outdated.