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Social Security Wage Base Increases for 2023
October 14, 2022The Social Security Administration has announced that the 2023 wage base will be $160,200, up $13,200 from $147,000 in 2022. There are no changes to the combined rate for Social Security and Medicare.
Alert
At-A-Glance
- The Social Security Administration has announced that the 2023 wage base will be $160,200, up $13,200 from $147,000 in 2022.
- There are no changes to the combined rate for Social Security and Medicare.
- You can find the SSA Fact Sheet on 2023 Social Security changes at https://www.ssa.gov/news/press/factsheets/colafacts2023.pdf.
Social Security Changes for 2023
The Social Security Administration has announced that the 2023 wage base will be $160,200, up $13,200 from $147,000 in 2022.
The 7.65% combined rate for Social Security and Medicare remains unchanged for 2023. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount. The Medicare portion is 1.45% of all earnings.
Also, as of January 2023, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes.
Next Steps
The full scope of the SSA's changes go beyond those highlighted in this tax alert. For more, please refer to the SSA's website and the 2023 Fact Sheet. We’ll continue to track this topic and post updates when we have them.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
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