2017 Social Security Wage BasePosted:Oct 25th, 2016 12:54 pm
The Social Security wage base will be jumping to $127,200 for 2017. That is an $8,700 increase in the taxable wage base from 2016.
This tax is paid by both the employee and employer...it is deducted from the employees wages and the employer makes a matching contribution on behalf of the employees...each paying 6.2%.
Self-employeds pay it as part of their self-employment tax and pay both parts, which is a combined rate of 12.4% for the social security portion of the self-employment tax.