At least there’s a silver lining in the recession: For the first time in more than three decades, the Social Security wage base isn’t expected to increase next year. The actuaries at the Social Security Administration (SSA) are predicting that the wage base will remain at $106,800 for 2010 and even beyond into 2011.
The Social Security tax rate will also continue to be 7.65% on amounts up to the wage base and 1.45% for amounts above that (15.3% and 2.9%, respectively, for self-employed individuals).
But now the bad news: The SSA says that Social Security recipients will not see an increase in benefits next year either. It’s status quo all the way around.