SOCIAL SECURITY WAGE BASE INCREASES TO $110,100 FOR 2012

SOCIAL SECURITY WAGE BASE INCREASES TO $110,100 FOR 2012

The Social Security Old Age Survivor's and Disability Insurance taxable wage base for 2012 increases to $110,100 from $106,800, the Social Security Administration said Oct. 19.

The maximum 2012 OASDI tax payable by each employee is $6,826.20, or 6.2 percent of the wage base. (The 4.2 percent rate now in effect for employees is schedule to expire Dec. 31 and will revert to the 6.2 percent rate for 2012, unless the federal government acts to extend or change the rate.) The employer matches the amount with an equal contribution.

The SSA also announced a 3.6 percent cost of living increase amount that affects several thresholds for benefits and coverage. The Social Security tax annual coverage threshold amount for domestic employees for 2012 increases to $1,800, and remains at $1,500 for election workers.

For the 1.45 percent tax for the Medicare (Health Insurance) portion of the Federal Insurance Contributions Act taxes, there is no wage base and all wages earned are subject to the tax.

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