October 17, 2017

Social Security - OASDI Wage Base Increases to $128,700 in 2018

The Old-Age, Survivors and Disability Insurance taxable wage base is to increase to $128,700 in 2018, up from $127,200 in 2017, the Social Security Administration said Oct. 13.

The maximum 2018 OASDI portion of the Federal Insurance Contributions Act tax payable by each employee is $7,979.40, or 6.2 percent of the wage base. Employers match the employee amount with an equal contribution.

The SSA also said a 2 percent cost-of-living increase is to take effect in 2018, affecting several thresholds for benefits and coverage. The cost-of-living adjustment is linked to the increase in the consumer price index as determined by the Labor Department Bureau of Labor Statistics.

Reproduced with permission from Tax and Accounting Center , Late Breaking Payroll News, (Oct. 13, 2017). Copyright 2017 by The Bureau of National Affairs, Inc. (800-372-1033) <http://www.bna.com>