Schmitt, John; Woo, Nicole; Bucknor, Cherrie - Center for Economic and Policy Research (CEPR) - 2015
On January 1st, the maximum amount of annual earnings subject to the Social Security tax – a.k.a. the payroll tax cap – increased to $118,500. Every year, this cap is adjusted to keep up with inflation. However, many American workers are not aware that any wages above the cap are not taxed...