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Tax table for 2016 married couple6/24/2023 Social Security is financed by a 12.4 percent tax on wages up to the annual threshold, with half (6.2 percent) paid by workers and the other half paid by employers. Earnings above this amount are not subject to the Social Security portion of the payroll tax or used to calculate retirement payouts. The maximum amount of wages subject to Social Security taxes will also remain unchanged at $118,500. 15, 2015, the Social Security Administration (SSA) announced that there will be no increase in monthly Social Security benefits in 2016, and that HR professionals won’t have to adjust their payroll tax systems in 2016 for a Social Security FICA increase, as the amount of earned income subject to Social Security taxes won’t change, given the absence of inflation and tepid wage increases over the past year.īut the modest amount of inflation this year was enough to cause small upward adjustments in tax filers’ income tax brackets for 2016. For more about 2017 Social Security earnings limits and other tax adjustments, see theĢ017 Payroll Taxes Will Hit Higher Incomes. Update: Maximum earnings subject to the Society Security payroll tax will increase in 2017.
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