27 June 2016 Social Security Administration publishes wage base projections years 2017 through year 2025 For those responsible for employment tax budgets, or just curious what the future may hold, following are the estimated Social Security wage base limits for employers and employees for calendar years 2017-2025 as recently published by the Social Security Administration (SSA). (The 2016 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, June 22, 2016; Table V.C.I, pg. 118) In reviewing the chart shown on the following page, keep in mind that the SSA provides three estimates — high, intermediate and low. For 2016, the actual wage base is $118,500, the same as the 2016 intermediate and high-cost estimate. The June 2016 projections reflect no increase in the 2017 wage base for the high-cost estimate, and an increase to $126,000 for the intermediate and low cost estimate. The Trustees Report states that when taken in combination, Social Security's retirement and disability programs have dedicated resources sufficient to cover benefits for nearly 20 years, until 2034. The Medicare Hospital Insurance Trust Fund will have sufficient funds to cover its obligations until 2028. (US Department of Treasury Fact Sheet, June 22, 2016.) In his remarks concerning the Trustee's report, Treasury Secretary Lew stated that "reform will be needed, and Congress should not wait until the eleventh hour to address the fiscal challenges given that they represent the cornerstone of economic security for seniors in our country." (US Department of Treasury press release, June 22, 2016.)
Document ID: 2016-1117 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
