2014 Social Security Limits Announced
The 2014 Social Security limits have been announced, including the following:
The Social Security wage base will increase to $117,000 which is an increase of $3,300 from 2013.
The tax rate for Social Security will remain at 6.2% for both employees and employers. This is unchanged from 2013.
The employer’s share of Medicare tax will stay at 1.45% of all pay. This is unchanged from 2013.
The employee’s share of the Medicare tax will also stay at 1.45%, but the 0.9% Medicare surtax kicks in on singles with wages exceeding $200,000 and couples earning over $250,000. The surtax doesn’t affect the employer’s share. Self-employed individuals also will be subject to the surtax.
Social Security benefits will rise 1.5%.
The earnings limits for Social Security recipients for 2014 are increasing. People who turn 66 next year will not lose any benefits if they earn $41,400 or less before they reach that age. Individuals between ages 62 and 66 by the end of 2014 can make up to $15,480 before they’ll lose any benefits. There is no earnings cap once a beneficiary turns 66.
Here is the link to the announcement which includes additional details to the above mentioned information:
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