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Social Security Rates & Limits Set for 2019

According to the Journal of Accountancy, “The Social Security Administration announced that the maximum amount of wages subject to the old age, survivors, and disability insurance (OASDI) tax will increase to $132,900 for 2019. The OASDI tax rate is 6.2%, so an employee with wages up to or above the maximum in 2019 would pay $8,239.80 in tax and the employer would pay the equal amount.”

The article goes on to say, “recipients of Social Security benefits would get a 2.8% cost-of-living adjustment and that the earnings test for the amount of income that benefit recipients can receive without their benefits being reduced each year is $17,640 before full retirement age, and the limit taxpayers can earn in the year they reach full retirement age is $46,920.” Schreiber, S. P. (2018, November 6) Social Security wage base set for 2019.

Click here to read the full article from the Journal of Accountancy.

Click here to see the publication from the Social Security Administration.