Social Security Wage Base Increases to $160,200 for 2023
The Social Security Wage Base just received a big bump!
The Social Security Administration and the Internal Revenue Service recently announced that the 2023 social security wage base will be $160,200, which is an increase of $13,200 from $147,000 in 2022.
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. As in 2022, wages paid in excess of $200,000 in 2023 will be subject to an extra 0.9% Medicare tax that will be withheld only from employees’ wages. Employers will not pay the extra tax.
The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, will be 7.65% for 2023 up to the social security wage base. The maximum social security tax employees and employers will each pay in 2023 is $9,932.40, an increase of $818.40 from $9,114.00 in 2022.