The Social Security Administration (SSA) has revised the wage base for 2018. The Social Security wage base is $128,400 for 2018 and not $128,700 as previously reported by the SSA. The wage base for 2017 is $127,200.
Background. Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index.
The SSA cost-of-living adjustments (COLAs) are based on the rise in the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). In October, the SSA announced that the 2018 wage base would be $128,700.
Update. Now, the SSA has revised the 2018 wage base. The SSA explained that the revision was necessary due to corrected Forms W-2s provided to the SSA by a national payroll service provider. “Approximately 500,000 corrections for Forms W-2s from 2016 resulted in changes for three items based on the national average wage: the 2018 taxable maximum, primary insurance amount bend points and family maximum bend points,” the SSA reported.
Social Security News Release, November 27, 2017