Vision Payroll

October 22, 2014

Tip of the Week: Social Security Administration Announces 2015 Increases

Filed under: News — Tags: , , , , , — Vision @ 5:29 pm

The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $117,000 in 2014 to $118,500 in 2015.

Social Security Increases Based on CPI Change

Since there was a 1.7% increase in the Consumer Price Index (CPI-W) from the third quarter of 2013 to the third quarter of 2014, the Social Security Administration announced a 1.7% cost-of-living adjustment for 2014. This compares to a 1.5% increase in 2014. The wage base increase is based on an increase in the national average wage index. Wages are taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $7,347.00. About 6% of workers who pay Social Security Tax are expected to reach the maximum in 2015.

Retirement Earnings Test Exempt Amounts Increase for 2015

For workers under full retirement age who are receiving Social Security benefits, $1 in benefits is withheld for every $2 above the Retirement Earnings Test Exempt Amount of $15,480 per year or $1,290 per month in 2014. This will increase to $15,720 per year or $1,310 per month for 2015. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $41,400 per year or $3,450 per month in 2014. This will increase to $41,880 per year or $3,490 per month for 2015. The month an individual reaches full retirement age there is no limit on earnings.

Quarter of Coverage Amounts Increases to $1,160

Also increasing for 2015 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2014, a credit is earned for every $1,200 of earnings, up to a maximum of four credits. That amount will increase to $1,220 for 2015.

Social Security Monthly Benefits to Increase in January 2014

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,642 to $2,663. See the table below for other changes in Social Security benefits for 2015.

2015 Social Security Benefits

20142015
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,642 per month$2,663 per month
SSI Federal Payment Standard:
Individual$721 per month$733 per month
Couple$1,082 per month$1,100 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,750$1,780
Annual Limit$7,060$7,180

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2015 or get further information at Important Facts and Figures.

October 30, 2013

Tip of the Week: Social Security Administration Announces 2014 Increases

Filed under: News — Tags: , , , , , — Vision @ 12:09 pm
Acting Commissioner of Social Security Carolyn W. Colvin
Acting Commissioner of Social Security Carolyn W. Colvin
The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $113,700 in 2013 to $117,000 in 2014.

Social Security Increases Based on CPI Change

Since there was a 1.5% increase in the Consumer Price Index (CPI-W) from the third quarter of 2012 to the third quarter of 2013, the Social Security Administration announced a 1.5% cost-of-living adjustment for 2014. This compares to a 1.7% increase in 2013. The wage base increase is based on an increase in the national average wage index. Wages are taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $7,254.00. About 6% of workers who pay Social Security Tax are expected to reach the maximum in 2014.

Retirement Earnings Test Exempt Amounts Increase for 2014

For workers under full retirement age who are receiving Social Security benefits, $1 in benefits is withheld for every $2 above the Retirement Earnings Test Exempt Amount of $15,120 per year or $1,260 per month in 2013. This will increase to $15,480 per year or $1,290 per month for 2014. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $40,080 per year or $3,340 per month in 2013. This will increase to $41,400 per year or $3,450 per month for 2014. The month an individual reaches full retirement age there is no limit on earnings.

Quarter of Coverage Amounts Increases to $1,160

Also increasing for 2014 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2013, a credit is earned for every $1,160 of earnings, up to a maximum of four credits. That amount will increase to $1,200 for 2014.

Social Security Monthly Benefits to Increase in January 2014

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,533 to $2,642. See the table below for other changes in Social Security benefits for 2014.

2014 Social Security Benefits

20132014
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,533 per month$2,642 per month
SSI Federal Payment Standard:
Individual$710 per month$721 per month
Couple$1,066 per month$1,082 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,730$1,750
Annual Limit$6,960$7,060

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2014 or get further information at Important Facts and Figures.

October 16, 2012

Social Security Administration Announces 2013 Increases

Filed under: News — Tags: , , , , — Vision @ 9:59 am
Commissioner of Social Security, Michael J. Astrue
Commissioner of Social Security, Michael J. Astrue
The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $110,100 in 2012 to $113,700 in 2013.

Social Security Increases Based on CPI Change

Since there was a 1.7% increase in the Consumer Price Index (CPI-W) from the third quarter of 2011 to the third quarter of 2012, the Social Security Wage Base will also increase by 1.7%. This compares to a 3.6% increase in 2012. Wages are scheduled to be taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $7,049.40. There is a proposal to keep the current rate of 4.2% for employees, but it has not passed at this time. About 6% of workers who pay Social Security Tax are expected to reach the maximum in 2003.

Retirement Earnings Test Exempt Amounts Increase for 2013

For workers under full retirement age who are receiving Social Security benefits, $1 in benefits is withheld for every $2 above the Retirement Earnings Test Exempt Amount of $14,640 per year or $1,220 per month in 2012. This will increase to $15,120 per year or $1,260 per month for 2013. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $38,880 per year or $3,240 per month in 2012. This will increase to $40,080 per year or $3,340 per month for 2013. The month an individual reaches full retirement age there is no limit on earnings.

Quarter of Coverage Amounts Increases to $1,160

Also increasing for 2013 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2012, a credit is earned for every $1,130 of earnings, up to a maximum of four credits. That amount will increase to $1,160 for 2013.

Social Security Monthly Benefits to Increase in January 2013

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,513 to $2,533. See the table below for other changes in Social Security benefits for 2012.

2013 Social Security Benefits

20122013
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,513 per month$2,533 per month
SSI Federal Payment Standard:
Individual$698 per month$710 per month
Couple$1,048 per month$1,066 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,700$1,730
Annual Limit$6,840$6,960

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2013 or get further information at Important Facts and Figures.

October 19, 2011

Tip of the Week: Social Security Administration Announces 2012 Increases

Filed under: News — Tags: , , , , , — Vision @ 10:23 am
Commissioner of Social Security, Michael J. Astrue
Commissioner of Social Security, Michael J. Astrue
The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $106,800 in 2011 to $110,100 in 2012.

Social Security Increases Based on CPI Change

Since there was a 3.6% increase in the Consumer Price Index (CPI-W) from the third quarter of 2010 to the third quarter of 2011, the Social Security Wage Base will also increase by 3.6%. This is the first increase in the Social Security Wage base since 2009. Wages are scheduled to be taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $6,826.20. There are proposals to keep the current rate of 4.2% for employees or to reduce it to 3.1%, but none has passed at this time. About 7% of workers who pay Social Security Tax are expected to reach the maximum in 2012.

Retirement Earnings Test Exempt Amounts Increase for 2012

For workers under full retirement age who are receiving Social Security benefits, $1 in benefits is withheld for every $2 above the Retirement Earnings Test Exempt Amount of $14,160 per year or $1,180 per month in 2011. This will increase to $14,640 per year or $1,220 per month for 2012. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $37,680 per year or $3,140 per month in 2011. This will increase to $38,880 per year or $3,240 per month for 2012. The month an individual reaches full retirement age there is no limit on earnings.

Quarter of Coverage Amounts Increases to $1,130

Also increasing for 2012 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2011, a credit is earned for every $1,120 of earnings, up to a maximum of four credits. That amount will increase to $1,130 for 2012.

Social Security Monthly Benefits to Increase in January 2012

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,366 to $2,513. See the table below for other changes in Social Security benefits for 2012.

2012 Social Security Benefits

20112012
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,366 per month$2,513 per month
SSI Federal Payment Standard:
Individual$674 per month$698 per month
Couple$1,011 per month$1,048 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,640$1,700
Annual Limit$6,600$6,840

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2012 or get further information at Important Facts and Figures.

October 16, 2010

Social Security Administration Announces 2011 Changes

Filed under: News — Tags: , , , , — Vision @ 3:51 pm
Commissioner of Social Security, Michael J. Astrue
Commissioner of Social Security, Michael J. Astrue
The Social Security Administration announced recently that the Maximum Taxable Earnings or Social Security Wage Base would not change for 2011.

Social Security Increases Based on CPI Change

Since there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2008 to the third quarter of 2010, the Social Security Wage Base will remain at $106,800. There is no provision for a Cost-of-Living Adjustment (COLA) when there is no increase in the CPI-W. Wages are taxed at 6.2%, so the maximum tax to be paid by each employee will be $6,621.60. About 7% of workers who pay Social Security Tax are expected to reach the maximum in 2010.

Retirement Earnings Test Exempt Amounts Remain Unchanged for 2011

For workers under full retirement age, $1 in benefits will be withheld for every $2 above the Retirement Earnings Test Exempt Amount of $14,160 per year or $1,180 per month. The year an individual reaches full retirement age, $1 in benefits will be withheld for every $3 above the Retirement Earnings Test Exempt Amount of $37,680 per year or $3,140 per month. The month an individual reaches full retirement age there is no limit on earnings. These amounts are also unchanged from 2010 to 2011.

Quarter of Coverage Amounts Stay at $1,120

Also unchanged for 2011 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2011, a credit will be earned for every $1,120 of earnings, up to a maximum of four credits.

Contact Vision Payroll if you have any questions on the Social Security changes for 2011 or get further information at Important Facts and Figures.

August 20, 2010

Question of the Week: Has the 2011 Social Security Wage Base Been Announced?

Timothy F. Geithner, Secretary of the Treasury, and Managing Trustee of the Trust Funds.
Timothy F. Geithner, Secretary of the Treasury, and Managing Trustee of the Trust Funds.
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.

October 19, 2009

Social Security Administration Announces 2010 Changes

Filed under: News — Tags: , , , , — Vision @ 11:21 am

The Social Security Administration announced recently that the Maximum Taxable Earnings or Social Security Wage Base would not change for 2010. Since there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2008 to the third quarter of 2009, the Social Security Wage Base will remain at $106,800. There is no provision for a Cost-of-Living Adjustment (COLA) when there is no increase in the CPI-W. Wages are taxed at 6.2%, so the maximum tax to be paid by each employee will be $6,621.60. About 7% of workers who pay Social Security Tax are expected to reach the maximum in 2010.

For workers under full retirement age, $1 in benefits will be withheld for every $2 above the Retirement Earnings Test Exempt Amount of $14,160 per year or $1,180 per month. The year an individual reaches full retirement age, $1 in benefits will be withheld for every $3 above the Retirement Earnings Test Exempt Amount of $37,680 per year or $3,140 per month. The month an individual reaches full retirement age there is no limit on earnings. These amounts are unchanged from 2009 to 2010.

One amount that did increase for 2010 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2009, a credit is earned for every $1,090 of earnings, up to a maximum of four credits. That amount will increase to $1,120 in 2010.

Contact Vision Payroll if you have any questions on the Social Security changes for 2010 or get further information at Important Facts and Figures.

October 17, 2008

Question of the Week: When Will the 2009 Social Security Wage Base Be Announced?

Filed under: News — Tags: , , , , , — Vision @ 10:24 am

This week’s question comes from Roseanne, a payroll manager. When will the 2009 Social Security wage base be announced? Answer: The US Department of Labor has just announced that the 2009 Social Security Wage Base will increase by $4,800 to $106,800. Since wages are taxed at a rate of 6.2%, the maximum tax to be paid by each employee will therefore increase to $6,621.60 or an increase of $297.60. The increase impacts about 7% of workers who pay Social Security Tax. Vision Payroll will automatically update its system for 2009 to reflect the higher wage base.

September 1, 2008

Alaska Governor Palin Signs Unemployment Benefits Increase into Law

Filed under: News — Tags: , , , , , , — Vision @ 11:46 am

Alaska Governor Sarah Palin recently signed Senate Bill 120 into law. Under the new law, for new unemployment insurance benefit years beginning after December 31, 2008, the maximum weekly benefit will increase from $248 to $370 and the qualifying amount for unemployment insurance benefits increases from $1000 to $2500. The new law also shifts a portion of the tax responsibility away from the employer to the employees. Contact Vision Payroll if you have any questions on recent changes to the Alaska unemployment insurance law.

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