The Social Security Administration has announced that the Social Security (often referred to as FICA or OASDI) taxable wage base for 2015 will increase to $118,500 from $117,000 in 2014.

At the same tax rate of 6.2 percent of the wage base, the maximum 2015 Federal Insurance Contributions Act tax payable by individuals will be $7,347.00, up from $7,254.00 in 2014. This represents a 1.3% tax increase. Employers will also realize the same increase as they match the employee amount with an equal contribution. Self employed individuals reaching the cap will realize a tax increase of $184.00

Of the 165 million workers who are to pay Social Security taxes in 2015, the Social Security Administration estimated that about 10 million individuals will pay higher taxes because of this higher taxable wage base.

The Advi$or notes that the FICA taxable wage base ten years ago (2005) was $90,000 representing $5,580.00 in SS taxes. Thus in the last 10 years, SS taxes have increased $1,767, or 32%.

 

About Time & Pay:

Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact us today to learn why business owners throughout the country are saying:

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