US Employees: 2023 Payroll Notice

2023 Social Security Wage Cap Jumps to $160,200 for Payroll Taxes

Starting Jan. 1, 2023, the maximum earnings subject to the Social Security payroll tax will increase by nearly 9 percent to $160,200—up from the $147,000 maximum for 2022, the Social Security Administration (SSA) recently announced.

The taxable wage cap is subject to an automatic adjustment each year based on increases in the national average wage index (not the inflation rate), calculated annually by the SSA.

The SSA also posted a fact sheet summarizing the 2023 cost-of-living adjustments (COLAs).

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