This week’s question comes from Sylvia, a payroll manager. I thought I heard that the social security wage base would remain the same in 2011 as it was in 2010, but I can’t find anything official. Has the 2011 social security wage base been announced? Answer: Although the official announcement has not been made that for 2011 there will be no increase in the social security wage base, The 2010 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds has been released. In it, the Board of Trustees estimates that the 2011 social security wage base will remain unchanged at $106,800. The report includes the information about financial operations, legislative changes, and actuarial assumptions.
Second Straight Year with No Increase in Social Security Wage Base
If the prediction holds true, 2011 would be the third straight year that the wage base would be $106,800 and the maximum social security withholding would be $6,621.60. At this time, an increase in the wage base and maximum withholding is projected for 2012.
Social Security Wage Base Projected to Increase Over 40% by 2019
The Board of Trustees projects annual increases through 2019. Currently, the Board of Trustees estimates that the social security wage base will increase to $153,600 for the year 2019.
Vision Payroll Expects Official Announcement in October
When the Social Security Administration (SSA) makes the official announcement, most likely in October, Vision Payroll will provide updated amounts for 2011. Visit our Important Facts and Figures page for more details.