The Social Security “wage base” is projected to rise to $141,900 in 2021. So says the Social Security Administration Office of the Chief Actuary (OCA). The 2020 level is $137,700. The wage base is the maximum amount of earnings that are subject to Social Security tax each year. Both the employer and the employee pay Social Security tax, at a rate of 6.2% of the employee’s compensation, for a total of 12.4%. The self-employed pay both the employer and employee portions, also for a total of 12.4%. While the OCA has projected next year’s amount, the official figure will be announced in October. Call or visit our website for more information! www.mjscpa.com/
