In 2015, the Social Security benefits rise 1.7%. The earnings limits are on the rise too; individuals who turn 66 in 2015 do not lose any benefits if they make $41,880 or less before they reach 66. Individuals between age 62 and 66 by the end of 2015 can make up to $15,720 before they lose any benefits. There’s no earnings cap once a beneficiary turns 66.
On the other hand, the Social Security wage base limit increases this year to $118,500 (up $1,500 from 2014). The Social Security tax rate imposed on employers and employees remains at 6.2%.
The Medicare tax stays at 1.45% of all pay, for both the employer and the employee. Additionally, for those whose wages and self-employment income (combined) is over the income threshold, they will pay aMedicare surtax of 0.9% on the amount over the threshold. Employers are required to withhold the additional 0.9% on the wages above the threshold.
Single & Head of Household: over $200,000
Married Filling Joint: over $250,000
Married filing Single: over $125,000
Self-employed individuals pay Social Security of 12.4%; Medicare of 2.9% and the additional Medicare surtax for 0.9% over their respective threshold.