Annual Social Security Tax Cap 2024. A 12.4% payroll tax funds social security, split equally between employees and employers. This amount is known as the “maximum taxable earnings” and changes each year.
(for 2023, the tax limit was $160,200. The social security administration recently announced that the wage base for computing social security tax will increase to $168,600 for 2024 (up from $160,200 for 2023).
The Social Security Administration (Ssa) Announced That The Maximum Earnings Subject To Social Security (Oasdi) Tax Will Increase From $160,200 To $168,600 In 2024 (An Increase Of $8,400).
The maximum benefit exists because there is a cap on the wages subject to social security tax.
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The 2024 social security cap represents a $8,400 increase over 2023.
Annual Social Security Tax Cap 2024 Images References :
Social Security Is Financed By A 12.4 Percent Payroll Tax On Wages Up To The Taxable Earnings Cap, With Half (6.2 Percent) Paid By Workers And The Other Half Paid By Employers.
Ey has listed some its income tax expectations from budget 2024, these are: