Social Security Income Withholding Limit

What s the current social security withholding maximum.

Social security income withholding limit. If you earn more than 17 040 in 2018 social security will withhold the necessary amount as soon as they find out about it. An additional medicare tax rate of 0 9 is applicable to the threshold amount mentioned. When you complete the form you will need to select the percentage of your monthly benefit amount you want withheld. The amount they d need to withhold is 1 of the benefits payable on your record for each 2 that you earn in excess of 17 040 this year.

When you have more than one job in a year each of your employers must withhold social security taxes from your wages no matter what the other employers may have withheld. The resulting maximum social security tax for 2020 is 8 537 40. Only these percentages can be withheld. If you earned more than the maximum in any year whether in one job or more than one we only use the maximum to calculate your benefits.

The social security maximum taxable income for 2020 is 137 700. The social security maximum taxable income for 2021 is 142 800. For the period between january 1 and the month you attain full retirement age the income limit increases to 48 600 for 2020 without a reduction in benefits. For 2020 the maximum limit on earnings for withholding of social security old age survivors and disability insurance tax is 137 700 00.

1 there is no maximum taxable income for medicare withholding. For every 3 you exceed that limit 1 will be withheld in benefits. As a result in 2021 you ll pay no more than 8 853 60 142 800 x 6 2 in social security taxes. They also pay a 2 9 medicare tax on their entire net earnings.

You may then end up with total social security taxes withheld that exceed the maximum. Listed below are the maximum taxable earnings for social security by year from 1937 to the present. Self employed individuals pay a combined employer and employee amount towards social security taxes which is at 12 4 up to 137 700 on their net earnings. You can have 7 10 12 or 22 percent of your monthly benefit withheld for taxes.

Flat dollar amounts are not accepted. In 2021 this limit is 142 800 up from the 2020 limit of 137 700. The social security tax rate remains at 6 2 percent.