Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

The SS tax rate is scheduled for a statutory increase effective October1, 2010 from 6% to 7%. Why is the 1% increase necessary?

April 26, 2017effective increase rate scheduled SS statutory tax

0

Posted

The SS tax rate is scheduled for a statutory increase effective October1, 2010 from 6% to 7%. Why is the 1% increase necessary?

1 Answer

0

Posted

The statutory SS tax rate increase would increase the employee’s share of contributions from 6% to 7% of taxable wages and would also increase the employer’s matching contribution by the same rate, for a total of 2% increase in the combined SS tax rate (14%). This increase is actuarially determined to balance the benefit formula.