• The Social Security wage base for 2014 will increase to $117,000 from $113,700.
  • The FICA contribution rate is scheduled to remain at 6.2% for 2014.
  • For the Medicare (HI) portion of the FICA taxes, there is no wage base and all wages earned are subject to the HI tax, which is also paid by employers and employees. Each pays at a 1.45% rate, although employees pay an additional 0.9% on wages greater than $200,000.
  • A 1.5% cost-of-living increase amount is to take effect, affecting several thresholds for benefits and coverage. The Social Security tax annual coverage threshold amount for domestic employees increases to $1,900 and remains $1,600 for election workers.

Leave a reply