On October 22, 2014 the Social Security Administration (SSA) announced there will be a $1,500 increase in the Social Security and Disability Insurance taxable wage base for 2014. In addition, there will be a 1.7% cost of living increase for the more than 58 million people collecting Social Security benefits.

With the Social Security wage base increase to $118,500 for 2015, the maximum 2015 OASDI tax payable by each employee is $7,347, or 6.2 percent of the wage base. In 2015 each employee contribution is matched with an employer contribution of 6.2% of gross pay.

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.  The Medicare tax is 2.35% for employees with wages greater than $200,000 ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return). The employer portion of the Medicare tax remains at a flat 1.45%.