What is the maximum amount of earnings subject to the Social Security tax in 2014?

http://parrottcpa.blogspot.com/2014/01/what-is-maximum-amount-of-earnings.html

What is the maximum amount of earnings subject to the Social Security tax in 2014?

The maximum amount of an employee’s 2014 earnings (and a self-employed person’s net income) that is subject to the Social Security tax is $117,000. This amount is also known as the Social Security annual limit, wage base, contribution and benefit base, ceiling, tax cap, and maximum taxable earnings. The maximum amount is adjusted annually based on the national average wage index. The combination of the Social Security tax and the Medicare tax is often referred to as the FICA tax. However, there is no annual limit or cap on the earnings for the Medicare tax. In other words, every dollar of wages, salaries, self-employed person’s net income, etc. is subject to the Medicare tax.

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About parrottcpa

Parrott & Associates, Certified Public Accountants Specializing In Business & Individual Taxes, Accounting & Payroll Located in Cumming, Georgia http://parrottcpa.com/
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