Social Security Wage Base Increases for 2024

At A Glance

• The Social Security Administration (SSA) has announced the 2024 wage base will be $168,600, up $8,400 from $160,200 in 2023.
• There are no changes to the combined rate for Social Security and Medicare.
• You can find the SSA Fact Sheet on 2024 Social Security changes at https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf.

Social Security Changes for 2024

The Social Security Administration (SSA) has announced the 2024 wage base limit will be $168,600, up $8,400 from $160,200 in 2023.

The 7.65% combined rate for Social Security and Medicare remains unchanged for 2024. The Social Security portion of Old-Age, Survivors and Disability Insurance (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount. The Medicare portion is 1.45% of all earnings.

Also, as of January 2024, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes; employers are not required to pay a matching 0.9% portion of the additional Medicare tax.

Next Steps

As a Paylocity client, you do not need to act. Paylocity will apply this update on time for all payrolls dated in 2024.

To review the full scope of the SSA's changes, please refer to the SSA's website and the 2024 Fact Sheet.

Thank you for choosing Paylocity as your Payroll Tax partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, tax attorney, or tax advisor.