Tax News Update    Email this document    Print this document  

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 2021 through 2029 as recently published by the Social Security Administration (SSA). (The 2020 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, April 22, 2020, 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 2020, the actual wage base is $137,700, higher than the projected intermediate and high-cost estimate of $136,800 and higher than the low- cost estimate of $137,100 in the April 2019 Annual Report of the Board of Trustees. The April 2020 projections reflect an increase in 2021 to $141,900 (intermediate and high cost) and $142,200 (low cost).

Projections concerning length of trust funds' solvency

The Trustees Report states that the will have dedicated resources sufficient to cover benefits until 2034, the same as predicted last year, and the combined OASI fund will last until 2035, also the same as last year's report. The Disability Insurance (DI) Trust Fund is projected to be depleted in 2065, 13 years later than predicted last year. (Social Security Administration, Summary: Actuarial Status of the Social Security Trust Funds, April 2020.)

The wage base projections are provided on the next page.

Projected Social Security wage base information as provided by the SSA in April 2020

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash