Notify affected employees that more of their pay will be subject to payroll withholding. Social Security Earnings Test COLA Workers can start to collect Social Security retirement benefits as early as age 62, but their monthly payment will be lower than if they wait until their normal retirement age —age 66 for people born in through , for instance. Payroll Tax Compliance. You have successfully saved this page as a bookmark. OK My Bookmarks.
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The cap limits how much high earners need to pay in Social Security taxes each year. Critics argue that income tax caps unfairly favor high earners compared to low-income earners. Others believe that raising the cap would effectively result in one of the largest tax hikes of all-time.
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Only the social security tax has a wage base limit. The wage base limit is the maximum wage that's subject to the tax for that year. Refer to "What's New" in Publication 15 for the current wage limit for social security wages; or Publication 51 for agricultural employers. More In Help. Additional Medicare Tax Withholding Rate Additional Medicare Tax applies to an individual's Medicare wages that exceed a threshold amount based on the taxpayer's filing status.
Wage Base Limits Only the social security tax has a wage base limit.
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