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What is the Social Security Cap for 2020?

social security cap

The Social Security Administration released several figures pertinent to both workers and retirees. These statistics reveal there’s been a large increase in the worker wage base and a modest boost to retirement benefits.

These figures demonstrate the continuing strength of the US economy. But the social security cap will be changing as a result.

An Increasing Wage Base

The social security cap for 2020 will rise by 3.6% in 2020 to $137,700. This is the amount of earnings subject to the Social Security tax.… Read the rest

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What is the Social Security Tax Rate Limit?

Anyone with a job will see a Social Security tax added to their paychecks. This payroll tax amounts to 6.2% of whatever you earned. The money goes directly towards funding the Social Security program.

social security

Self-employed individuals pay double this amount because they must cover both the employee and employer parts of the tax. However, you can deduct half of this when you file your taxes.

The Social Security Wage Base is the threshold on income. Anything you earn above this threshold isn’t eligible for Social Security tax.… Read the rest