October 14, 2021
Social Security wage base to increase in 2022
The Social Security wage base will increase from $142,800 to $147,000 in 2022, higher than the $146,700 high-cost estimate and lower than the $147,300 low-cost estimate published in the August 2021 Annual Report of the Board of Trustees. (See EY Tax Alert 2021-1601, 9-7-2021; Social Security Administration Press Release.)
The Medicare tax rate for 2021 remains at 1.45% of all covered earnings for employers and employees. The Additional Medicare Tax of 0.9% applies to earned income of more than $200,000 ($250,000 for married couples filing jointly). While employers are required to withhold the additional 0.9% on covered wages over $200,000, there is no corresponding employer tax.
For a quick reference chart see the below.
For the complete Social Security Administration fact sheet go here.
Social Security, Medicare and disability insurance contributions
2021 compared to 2022
* Employers must withhold the Additional Medicare Tax of 0.9% of wages over $200,000. There is no corresponding employer tax.
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