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Social Security Wage Base Projected for 2015

According to the Social Security Administration trustees, the Social Security wage base for 2015 is projected to be $119,100.  This represents an increase of $2,100 from the 2014 wage base of $117,000.

This is an increase of 1.79% – and won’t be finalized until October when the other increases for Social Security amounts are announced. This is a relatively small increase when compared to recent annual increases we’ve seen.  The previous 3 years’ increases have averaged 3.09%.

This is different from the COLA (Cost of Living Adjustment), which has increased an average of 2.27% in the past three years. The 2014 COLA (applicable to 2015 benefits and other figures) will be released later in the year, typically in October.

2 Comments

  1. NateNo Gravatar says:

    What if an individual has two jobs combined that exceed the $117,000 threshold? Is there a way to mitigate paying more than your fair share?

    1. jblankenshipNo Gravatar says:

      You have two choices – if one employer’s pay to you is enough or more than the threshold, instruct the other employer to not withhold SS tax. If that’s not the case and you have more than the 6.2% of $117,000 ($7,254) withheld in SS tax, you would enter the excess withheld on line 69 of your Form 1040. Be careful about this though: you want to check each employer’s withholding to make sure they’re not overwithholding (taking more than 6.2% by error) before you claim it as excess. If the excess is withheld in error, your employer is supposed to correct this on future paychecks, rather than you reporting it as excess withholding.

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