FICA Top Level Soars

Tuesday jan 17 2023

Social Security Administration announces the increases for 2023

The maximum earnings subject to the FICA tax will increase from $147,000 to $160,200 which means for 2023, the maximum Social Security tax that employers and employees each will pay is $9,932.40 ($160,200 x 6.2%). The Medicare component will remain the same at 1.45% of all earnings. Plus, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly, and $125,000 for married filing separately) will pay an additional .09% in Medicare taxes.
The cost-of-living increase of $8.7% will be seen for recipients of Social Security Benefits and Supplemental Security Income (SSI).