Social Security Revises 2018 Taxable Wage Base

Friday, January 05, 2018

Main News Photo

Source: CalChamber

For 2018, the Social Security Administration (SSA) announced that the Social Security taxable wage base will be $128, 400. This is the maximum amount of earnings subject to Social Security tax for 2018.

Initially, the SSA announced that the wage base would increase by $1,500 — from $127,200 to $128,700 maximum taxable earnings. However, the agency later revisedthat maximum to $128,400, an increase of $1,200 from last year.

According to the SSA, this lower taxable maximum amount is due to corrected Forms W-2 that a national payroll service provider provided to Social Security in late October 2017.

The taxable maximum amount change took effect January 1, 2018.

Gail Cecchettini Whaley, CalChamber Senior Employment Law Counsel 

HRCalifornia members can visit the Standard Deductions: Taxes in the HR Library for more information. Not a member? See how CalChamber can help you.

Category: Economic Development