2015 Social Security Changes After 1.5% COLA Increase

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The Social Social Administration (SSA) announced a 1.7 percent cost of living adjustment (COLA) for 2015 (vs 1.5% in 2014). As a result the following changes to your social security taxes and income will result. All changes will take effect in January.

Social Security Item
2015
2014
2013
Increase over previous year1.7%1.5%
Maximum taxable earnings (wage base) subject to social security taxes$118,500$117,000$113,700
Maximum social security benefit$2,663/mo.$2,533/mo.$2,642/mo.
Estimated average monthly social security benefit$1,328$1,275$1,294
Self-Employed social security tax rate15.30%15.30%15.30%
Employee social security tax rate (deducted from your paycheck)7.65%7.65%7.65%

The social security tax rate above is the combined rate for Social Security and Medicare. For employees the employer pays half the social security tax, whereas for self employed they have to pay both the employee and employer components and hence the higher tax rate.

Once a worker passes the maximum taxable earnings (or social security wage base) then all earnings above that amount are NOT subject to social security taxes.

Source: Social Security Administration (socialsecurity.gov)

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{ 1 comment… read it below or add one }

Rick Julian October 31, 2013 at 5:42 pm

Looks like you revered the maximum benefit and estimated average benefit figures. Those listed under 2013 belong under 2014.

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