Taxable Income Increases for Social Security in 2020

There’s a lot of buzz right now about the Social Security taxes you’ll be paying in 2020. “The maximum tax per worker will be $17,074.80 – or a maximum $8,537.40 withheld from a highly-paid employee’s 2020 paycheck.”

This means, in 2020, the amount you pay in Social Security will increase 3.6% to 6.2%.

While this takes more money out of the employees’ pockets, it also adds benefits for retirees. It’s estimated, more than 63-million people will get a 1.6% cost-of-living increase in 2020 (i.e. approximately $24 extra/month.)

To learn more about how the wage base was determined for 2020 click here.

Focus HR, Inc. payroll specialists will be managing these employee deductions. If you have any questions, please reach out to your designated specialist.

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