The Social Security Administration is issuing the largest bump in benefits to retirees in 40 years, while increasing the taxable wage base for workers by nearly 3 percent in order to keep up with rising inflation under President Biden.
To account for the inflation from the third quarter of 2020 through the third quarter of this year, the SSA on Wednesday revealed the taxable wage base for Social Security this year will rise by 2.9 percent, keeping the tax rate at 6.2 percent for employees and employers each.
Previously, this taxable wage base was set at $142,800. Now with the increase, the first $147,000 will be subject to contribute 6.2 percent of their earnings. That comes to $9,114.00 to the social security program