2002 Social Security Wage Base Announced
The Social Security Administration has announced the new wage base for application of Social Security tax withholding, effective January 1, 2002. The taxable wage base will increase 5.6% from $80,400 to $84,900.
This increase will have the effect of raising the amount of Social Security tax paid by individuals making at least the maximum in Social Security taxable wages by $279, bringing the total tax to $5,263.80.
Self-employed taxpayers will see an increase of $558 in Social Security taxes, bringing the maximum Social Security tax to $10,527.60.
Meanwhile, Social Security benefits will increase by 2.6%, and the average Social Security recipient will receive $874 per month.