Social Security Wage Base and Benefit Increase for 2013

On October 16th, the Social Security Administration made announcements regarding Social Security and Supplemental income as well as the Social Security tax maximum payable amount.

An estimated 62 million Americans’ monthly social security and supplemental income benefits will be increasing 1.7%. As a result, the average Social Security retirement check will increase - for single employees, the payment will increase by $21 for a total check of $1,261 and for a couple, the payment will increase by $34 for a total check of $2048.

However, some of this higher payment will be canceled out due to Medicare premiums also increasing. For example, a current retiree who is on Medicare Part B will pay $99.90 a month.  In 2013, this is scheduled to increase an estimated $7.

On January 13, 2013, 56 million Americans will be receiving those social security benefits, while 8 million social security income beneficiaries will receive their payments December 31, 2012.

In addition to the benefits increase, the SSA also announced an increase to the maximum Social Security tax payable by working employees. Due to an increase in average wages, the amount of income that is taxable for the Social Security Tax is increasing to $113,700 from$110,100.

The increased maximum amount is estimated to affect 6% of approximately 163 million U.S. workers. The current maximum tax payable by each employee is 4.2%. This rate is set to expire December 31, 2012 and will increase to 6.2%, or $7,049.40 per employee.

For more information, visit the Social Security Administration website.

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