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Social Security Increases Taxable Wage Cap for 2021

Changes to Social Security tax calculations are coming soon. Starting Jan. 1, the maximum earnings subject to the Social Security payroll tax will be $142,800. This represents an increase of $5,100 from the current taxable maximum of $137,700.

The increase, which was announced this month, accompanies a 1.3% cost-of-living adjustment for Social Security recipients.

For further guidance, you can consult the Social Security Administration’s fact sheet and press release on the changes. And as always, please continue to follow the Paycom blog for relevant updates.