Social Security
2022
2023
Cost-of-living Adjustment (COLA) for December (payable in January)
5.9% (12/21)
8.7% (12/22)
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
$147,000
$160,200
Medicare taxable earnings
no limit
no limit
Earnings required to earn one credit (maximum of four credits per year)
$1,510
$1,640
Retirement Earnings Test exempt amounts
Under full retirement age (FRA) throughout 2023
$19,560
$21,240
FRA in 2023 (period before the month FRA is attained)
$51,960
$56,520
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
$1,024
$1,115
32% of the next $ of AIME, plus
$5,148
$5,606
15% of the remaining AIME in excess of
$6,172
$6,721
National Average Wage Index
$55,628.60
$60,575.07
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.
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