Social Security is coming for a bigger chunk of your paycheck

Source: Fox Business

The portion of personal income subject to Social Security tax has increased to $168,600 this year, up from $160,200 in 2023, which means some employees will have to pay roughly $521 more than they paid in 2023.

Social Security tax limits are calculated based on changes to the National Wage Index (NAWI), which tends to increase annually. The changes keep Social Security benefits on track with current inflation. In 2024, a higher portion of wages will be subject to the 6.2% OASDI tax (old age, survivors, and disability insurance). Still, according to a recent Kiplinger report, earnings that exceed the $168,600 limit won't be subject to Social Security payroll tax. That can result in considerable tax savings for those who earn more than the wage base.

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