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September 7, 2021
2021-1601

Social Security Administration publishes wage-base projections for 2022 through 2030

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 2022 through 2030 as recently published by the Social Security Administration (SSA). (The 2021 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, August 31, 2021, Table V.C.I.)

In reviewing the chart shown on the following page, keep in mind that the SSA provides three estimates — high, intermediate, and low. For 2021, the actual wage base is $142,800, higher than the projected intermediate and high-cost estimate of $136,800 and higher than the low- cost estimate of $141,900 in the April 2020 Annual Report of the Board of Trustees.

The August 2021 projections reflect an increase in 2022 to $146,700 (intermediate and high cost) and $147,300 (low cost).

Projections concerning length of trust funds' solvency

The Trustees Report states that the will have dedicated resources sufficient to cover benefits until 2033, one year sooner than predicted last year, and the combined OASI and Disability Insurance (DI) trust funds will last until 2034, also one year earlier from last year's report. The DI Trust Fund is projected to be depleted in 2057, eight years earlier than predicted last year. (Social Security Administration press release, August 31, 2021.)

The wage-base projections follow.

Projected Social Security wage-base information as provided by the SSA in August 2021

Calendar year

Intermediate estimated wage base $

Low-cost estimated wage base $

High-cost estimated wage base $

2021 (actual)

142,800

142,800

142,800

2022

146,700

147,300

146,700

2023

156,000

157,500

154,500

2024

162,900

168,600

156,300

2025

168,600

176,400

161,700

2026

174,300

183,900

165,000

2027

180,600

192,900

168,900

2028

187,200

202,200

173,400

2029

194,100

212,100

178,500

2030

201,300

222,600

183,600

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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