2023 Social Security Wage Base Update

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As we approach the end of the year, it is important to remain aware of changes that may affect your payroll software. One of the changes will be to the Social Security Wage Base limit. The wage base limit is the maximum wage that’s subject to Social Security tax for that year. In 2022, the Social Security Wage base was $147,000 and will be increasing to $160,200 for 2023.

The Social Security Tax Rate will remain unchanged at 6.2% for the Employee Share and 6.2% for the Employer Share. Medicare is also unchanged at 1.45% with no wage base cap, and an additional 0.9% added on all taxable wages over $200,000.

Most payroll software will make these wage base updates automatically, but it is important to ensure your software is current and remains up to date.  If you have any questions or need more information, please contact your BMSS professional at (833) CPA-BMSS or visit our Client Accounting and Advisory page on our website.

About BMSS

BMSS Advisors & CPAs was established in 1991 with the vision of creating a CPA firm that would provide peace of mind for its clients while sustaining a healthy, happy culture for its employees. As this dream has been realized, BMSS has grown to become one of the Southeast’s top advisory and accounting firms, now with eight offices throughout Alabama and Mississippi.

The CPA firm specializes in several industries, including (but not limited to) manufacturing, wholesale distribution, construction, technology, nonprofit, and government contracting. In addition to tax planning, compliance and assurance services, the firm boasts a robust business advisory practice area which includes transaction advisory, valuation, client accounting solutions, and CFO advisory services. BMSS also specializes in state and local tax, estate planning and employee benefit plan audits.

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