Uncle Sam has released new cost-of-living adjustments affecting Social Security tax withholding and retirement plans for 2014.
Social Security wage base
The Social Security Administration has announced that the 2014 taxable wage base for the Social Security portion of FICA increases to $117,000. That’s a 2.9% hike over the 2013 wage base of $113,700.
The 6.2% Social Security tax is payable by both employers and employees; in 2014, the maximum tax is $7,254. Except for pretax medical and tax-free, all wages are subject to the 1.45% Medicare portion of FICA, or the 2.35% Medicare portion of FICA for employees earning more than $200,000, since there’s no wage base. (SSA Fact Sheet, 10-30-13)
Exempt amounts for retirees. Retirees who want to return to work are a reliable resource, since they already know the ropes. However, they may lose some of their Social Security benefits. How much they’ll lose depends on an ...(register to read more)