Social Security Taxes Going Up For Some

The Social Security Administration (SSA) recently announced the 2013 social security wage base will be $113,700, an increase of $3,600 from the 2012 wage base. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax. Wages paid in excess of $200,000 in 2013 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.