Please note Beaird Harris will be closed Friday, December 8th for our annual holiday celebration.
These changes reflect a 3.2% increase in monthly benefits, a notable decrease compared to the 8.7% increase seen in the previous year. This adjustment is based on the fluctuations in the Consumer Price Index for the 12-month period ending in September 2023.
For individuals contributing to Social Security through their wages, there’s an important alteration to take note of. The maximum income subject to Social Security taxes is set to rise to $168,600, marking a 5% increase. This means that you’ll be contributing more to your Social Security taxes. Here’s a recap of the key dollar amounts:
What it means for you:
The Social Security and Medicare tax rates will remain unchanged from 2023 to 2024. These rates stand at 6.20% for Social Security and 1.45% for Medicare. Additionally, there is a 0.9% Medicare wages surtax applicable to single taxpayers with wages exceeding $200,000 ($250,000 for joint filers), which isn’t included in the aforementioned figures. It’s important to note that your employer also contributes 6.2% for Social Security and 1.45% for Medicare on your behalf. These employer contributions are factored into the self-employment tax rate of 15.3%, as self-employed individuals are responsible for both portions of the tax rate.
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