{"id":113209,"date":"2024-10-12T07:02:48","date_gmt":"2024-10-12T00:02:48","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=113209"},"modified":"2024-10-12T07:02:48","modified_gmt":"2024-10-12T00:02:48","slug":"how-the-social-security-payroll-tax-limit-for-2025-may-affect-you","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=113209","title":{"rendered":"How the Social Security payroll tax limit for 2025 may affect you"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108046573\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Hispanolistic | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>How the Social Security tax calculation works<\/h2>\n<div class=\"group\">\n<p>The Social Security payroll tax rate is 12.4%, with workers paying 6.2% through paycheck deductions. Employers pay the other 6.2%.<\/p>\n<p>For 2025, workers will pay 6.2% on earnings up to $176,100, for a <a href=\"https:\/\/www.ssa.gov\/oact\/cola\/cbb.html\" target=\"_blank\" rel=\"noopener\">maximum of $10,918.20<\/a>, according to the Social Security Administration. Once workers reach that max, they <a href=\"https:\/\/www.cnbc.com\/2024\/03\/02\/millionaires-reach-limit-for-social-security-payroll-taxes-for-2024.html\">don&#8217;t pay into the program<\/a> for the rest of the year.<\/p>\n<p>The 2025 adjustment has a bigger impact on self-employed workers because &#8220;they&#8217;re paying both sides of it,&#8221; meaning they owe the full 12.4%, according to Lovison, who is also a certified public accountant.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The government also collects 2.9% in Medicare payroll taxes, with workers and employers each paying 1.45%. But there is no cap on taxable earnings for Medicare.<\/p>\n<p>Self-employed workers are also responsible for both sides of the Medicare tax, for a combined 15.3% between Social Security and Medicare. However, they can deduct 50% of self-employment taxes on their individual return, even if they don&#8217;t itemize.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108020393\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108020393\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000348668\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108020395-4ED1-REQ-081424_SocialSecurity.jpg?v=1723650720&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Maximizing your Social Security benefits\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Concerns over Social Security solvency\u00a0<\/h2>\n<div class=\"group\">\n<p>The latest Social Security adjustments come amid growing concerns about the <a href=\"https:\/\/www.cnbc.com\/2024\/05\/06\/social-security-expected-to-run-short-on-funds-in-2035-government-says.html\">program&#8217;s solvency<\/a>. The trust funds used to pay benefits are expected to run out in 2035, the trustees&#8217; report showed in May.<\/p>\n<p>In the meantime, some advocates have pushed to <a href=\"https:\/\/crr.bc.edu\/to-fix-social-security-increasing-the-wage-base-should-be-part-of-the-solution\/\" target=\"_blank\" rel=\"noopener\">increase the Social Security wage base<\/a> to provide more funding.<\/p>\n<p>The Social Security Administration&#8217;s 2024 trustees&#8217; report details more than 150 options to <a href=\"https:\/\/www.ssa.gov\/oact\/solvency\/provisions\/summary.pdf\" target=\"_blank\" rel=\"noopener\">close the funding gap<\/a>, including ways to cut benefits and boost revenue.<\/p>\n<p>&#8220;Clearly, the biggest financial gain comes from eliminating the taxable maximum,&#8221; Alicia Munnell, director of the Center for Retirement Research at Boston College <a href=\"https:\/\/crr.bc.edu\/to-fix-social-security-increasing-the-wage-base-should-be-part-of-the-solution\/\" target=\"_blank\" rel=\"noopener\">wrote about the report<\/a> in August.<\/p>\n<p>However, future changes are unclear with control over Congress and the White House uncertain.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/10\/11\/social-security-payroll-tax-limit-2025.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hispanolistic | E+ | Getty Images How the Social Security tax calculation works The Social Security payroll tax rate is 12.4%, with workers paying 6.2% through paycheck deductions. Employers pay &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=113209\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-113209","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/113209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=113209"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/113209\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=113209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=113209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=113209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}