Social Security
2023
2024
Cost-of-living Adjustment (COLA) for December (payable in January)
8.7% (12/22)
3.2% (12/23)
Social Security for employees and employers
6.20%
6.20%
Medicare (Hospital Insurance) An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). The employer does not pay this additional percentage.
1.45%
1.45%
Maximum Social Security earnings for tax contributions and benefits
$160,200
$168,600
Medicare taxable earnings
no limit
no limit
Earnings required to earn one credit (maximum of four credits per year)
$1,640
$1,730
Retirement Earnings Test exempt amounts
Under full retirement age (FRA) throughout 2024
$21,240
$22,320
FRA in 2024 (period before the month FRA is attained)
$56,520
$59,520
FRA and over
no limit
no limit
Primary Insurance Amount (PIA) formula – is the basic benefit formula used to calculate a person’s benefit and is applied to their average indexed monthly earnings (AIME). For people attaining age 62 or younger in each year, the formula as follows:
90% of the first $ of AIME, plus
$1,115
$1,174
32% of the next $ of AIME, plus
$5,606
$5,904
15% of the remaining AIME in excess of
$6,721
$7,078
National Average Wage Index
$60,575.07
$63,795.13
Social Security and Medicare Publications
Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.
View the Catalog
To order either booklet, you can also visit www.imercer.com/guide and www.imercer.com/medicare.