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Compliance October 16, 2012
SSA Announces COLA, New Taxable Wage Base
October 16, 2012 (PLANSPONSOR.com) – Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7% in 2013, the Social Security Administration announced.
Reported by PLANSPONSOR staff
In addition, based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.
The 1.7% cost-of-living adjustment (COLA) will begin in January for Social Security beneficiaries and will begin December 31, 2012 for SSI recipients.
Information about Medicare changes for 2013, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.
The Social Security Act provides for how the COLA is calculated. To read more, visit www.socialsecurity.gov/cola.