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Tax & Assurance Guidance

Social Security Component of FICA to Increase

Posted on October 20, 2016 by

Margaret Amsden

Margaret Amsden

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The Social Security Administration announced the maximum earnings subject to the Social Security component of the FICA tax will increase for 2017 by $8,700.  For 2017 the maximum Social Security tax paid by employers and employees will be $7,886.40 each, correlating to the formula of $127,2000 x 6.2%.

  • A self-employed person with at least $127,200 in net self-employment earnings will pay $15,772.80, or the sum of $127,200 x 12.4% for the Social Security part of the tax
  • The Medicare component remains 1.45% of all earnings.  Individuals with earned income of more than $200,000, or $250,000 for married couples filing jointly) will pay an additional .9% in Medicare taxes.

Other 2017 cost-of-living adjustments can be found on the Social Security Administration website.

Margaret Amsden

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Margaret leads the firm’s private client services group as the point person for individual, estate and succession planning tax strategies.

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