Update Applicable to:

All employers

What happened?

The Social Security Agency (SSA) released the updated taxable maximum for earnings in 2024 to $168,600.

What are the details?

The OASDI tax rate for wages paid in 2024 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $168,600 would contribute $10,453.20 to the OASDI program in 2024, and his or her employer would contribute the same amount. The OASDI tax rate for self-employment income in 2024 is 12.4%. This is an increase of 5.2% (from $160,200 to $168,600).

Best practices

• Employers should follow the new taxable minimum to comply properly with the new limit.

Employers should review additional resources here:

Firm Article

Social Security Official Release

IRS Topic 751

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