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Explaining the Rise in Social Security’s Wage Cap
If your taxable 2017 earnings will exceed this year’s cap ($118,500) by a wide margin, you’ll see a hefty increase in the amount of Social Security tax withheld from your pay. Specifically, if you earn more than $127,200 in taxable wages, the amount you pay will increase by $539.40. And remember that what you may is just half of the tab…your employer (and, of course, that’s you if you’re self-employed) pays a matching amount. What’s intriguing about this increase is the size, since Social Security benefits are only increasing 0.3%. Fool.com’s Matthew Frankel, in a post on host.madison.com, explains the reasons for the increase, and offers conjecture for the future of the wage cap. Read his post here…
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