December 12, 2017

SSA Lowers Previously Announced 2018 Wage Base

In a rare move, the Social Security Administration on Nov. 27 lowered the 2018 Old-Age, Survivors and Disability Insurance taxable wage base to $128,400 from $128,700, which was announced Oct. 13.

The move by the agency stemmed from corrected Forms W-2, Wage and Tax Statement, that were provided in late October by a large payroll-service provider. The agency did not release the name of the provider.

“Approximately 500,000 corrections for W2s from 2016 resulted in changes for three items based on the national average wage: the 2018 taxable maximum, primary insurance amount bend points--figures used in the computation of Social Security benefits--and family maximum bend points,” the agency said in a news release. “No other items based on national average wages were affected.”

Based on the new amount, the maximum 2018 OASDI portion of the Federal Insurance Contributions Act tax payable by each employee is $7,960.80, or 6.2 percent of the wage base. Under the OASDI amount released in October, the employee portion was to be $7,979.40. Employers match the employee amount with an equal contribution.

Reproduced with permission from Late-Breaking Payroll News 179 PYBN Z(Dec. 1, 2017). Copyright 2017 by The Bureau of National Affairs, Inc. (800-372-1033) <http://www.bna.com>
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