The Social Security Administration (SSA) announced on Wednesday, October 30, 2013, that the 2014 social security wage base will be $117,000, an increase of $3,300 from the 2013 wage base of $113,700.
As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax. As in 2013, wages paid in excess of $200,000 in 2014 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
The SSA has created a fact sheet detailing changes from 2013 to 2014.