The Social Security Administration (SSA) has announced that the 2017 Social Security taxable wage base is increasing to $127,200, up $8,700 from the 2016 taxable wage base of $118,500. Once an employee reaches this taxable wage threshold no further Social Security tax will be withheld.
FICA Tax Rates
The 2017 FICA tax rate for employees will remain at 7.65%. This is the combined rate for Social Security and Medicare. The Social Security portion is 6.2% on earnings up to the taxable wage base of $127,200, and the