No Change to Social Security Wage Benefits in 2010

posted on Nov 11 by MBarry in the Payroll Taxes category

There’s good news for high-salaried employees… the social security benefit wage will not change in 2010, remaining at $106,800. This simplifies your payroll services’ projections for fiscal year 2010

This is the first time since 1975, the year that the Social Security Administration instituted a cost of living adjustment, that they have not adjusted the benefit.

The SSA’s Office of the Chief Actuary predicts that there will be little or no change in the wage base in 2011. The actual number won’t be determined until next October, but the estimate is sound, based upon the accuracy of the previous years’ predictions.

The 2011 prediction will help your CFO with budgeting for payroll services in 2011, as social security contributions are paid by both the employer and employee.

According to the SSA’s report, the projected benefit wage for the next few years:
2011 $106,800
2012 $114,900
2013 $119,400
2014 $124,200
2015 $129,300
2016 $134,700

The SSA report says that in 2016 tax revenues not be adequate enough to fund the full social security expense. However, the SSA expects to pay full benefits until the trust funds run out, which they predict to be 2037. Once that occurs, tax revenues will cover 76% of the scheduled benefits if tax revenues remain at today’s rates.

To get a copy of the report, go to www.ssa.gov/OACT/TR/2009/index.html.”

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