Schmitt, John; Jones, Janelle; Woo, Nicole - Center for Economic and Policy Research (CEPR) - 2013
On January 1, the maximum amount of annual earnings subject to the Social Security tax – a.k.a. the payroll tax cap … – increased to $113,700. Every year, this cap is adjusted to keep up with inflation. Many Americans are not aware that income … above the cap is not taxed by Social Security. In other words, workers who make $113,700 or less per year pay a higher …