2012 Social Security Wage Base Increases to $110,100
On October 19th, 2011 The Social Security Administration (SSA) announced there will be a $3,300 increase in the Social Security and Disability Insurance taxable wage base for 2012. This is the first increase since 2009. In addition, there will be a 3.6% cost of living increase for the more than 55 million people collecting Social Security benefits.
With the Social Security wage base increase to $110,100 for 2012, the maximum 2012 OASDI tax payable by each employee is $6,826.20, or 6.2 percent of the wage base. In 2011 each employee is paying 4.2% but this rate is set to expire at the end of the year unless Congress passes legislation to extend the 4.2% rate. Currently the employer pays 6.2 of gross pay as well.
The Medicare portion of the Federal Insurance Contributions Act tax continues to apply to all taxable wages earned, and the rate remains at 1.45 percent.
