June 6, 2022
Social Security Administration publishes wage base projections for 2023 through 2031
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). (2022 Social Security Board of Trustees, Press Release, 6-2-2022;The 2022 OASDI Trustees Report, 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 2022, the actual wage base is $147,000, higher than the projected intermediate and high-cost estimate of $146,700 and higher than the low- cost estimate of $147,300 in the August 2021 Annual Report of the Board of Trustees. (See EY Tax Alert 2021-1601.)
The June 2022 projections reflect an estimated increase in 2023 to $155,100 for intermediate, high-cost and low-cost.
Projections concerning length of trust funds' solvency
The Social Security Board of Trustees reported that the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to be depleted in 2035, one year later than was estimated last year.
The wage base projections are provided below.
Projected Social Security wage base information as provided by the SSA in June 2022
EY Payroll News Flash