On October 18th, the Social Security Administration announced that the Old-Age, Survivors and Disability Insurance (OASDI) taxable wage base is to increase to $127,200 in 2017 from $118,500 in 2016.
The maximum 2017 OASDI portion of the Federal Insurance Contributions Act tax payable by each employee is $7,886.40 or 6.2 percent of the wage base. Employers match the employee amount with an equal contribution.
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 percent rate, although employees pay an additional 0.9 percent on wages greater than $200,000.
The agency also said a 0.3 percent cost-of-living increase is to take effect in 2017, affecting several thresholds for benefits and coverage.
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