04 April 2023

Social Security Administration publishes wage base projections for 2024 through 2032

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 2024 through 2032 as recently published by the Social Security Administration (SSA). (2023 Social Security Board of Trustees, Press Release, 3-31-2023;The 2023 OASDI Trustees Report, Table V.C.1.)

In reviewing the following charts, keep in mind that the SSA provides three estimates — high, intermediate and low. For 2023, the actual wage base is $160,200, higher than the projected intermediate, high-cost and low-cost estimate of $155,100 in the June 2022 Annual Report of the Board of Trustees. (See EY Tax Alert 2022-0873.)

The March 2023 projections reflect an estimated increase in 2024 to $167,700 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 2034, one year earlier than was estimated last year.

Projected Social Security wage base information as provided by the SSA in March 2023

Calendar year

Intermediate

estimated wage base $

Low-cost

estimated wage base $

High-cost

estimated wage base $

2023 (actual)

160,200

160,200

160,200

2024

167,700

167,700

167,700

2025

174,900

175,500

171,000

2026

181,200

185,700

177,300

2027

188,700

197,100

183,600

2028

196,500

208,200

190,200

2029

204,600

219,300

196,800

2030

212,700

231,000

202,500

2031

221,400

243,000

207,900

2032

230,100

255,900

213,600

Projected Social Security wage base information as provided by the SSA in June 2022

(See EY Tax Alert 2022-0873)

Calendar year

Intermediate

estimated wage base $

Low-cost

estimated wage base $

High-cost

estimated wage base $

2022 (actual)

147,000

147,000

147,000

2023

155,100

155,100

155,100

2024

165,300

166,200

162,300

2025

173,400

177,300

165,000

2026

180,600

187,500

170,100

2027

188,100

197,100

175,200

2028

195,600

207,000

180,600

2029

203,100

217,500

185,700

2030

210,600

228,300

190,200

2031

218,400

239,700

195,000

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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)

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

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ATTACHMENT

EY Payroll News Flash

Document ID: 2023-0651