2023 Social Security Wage Base Update
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.