![]() Reminder: Law Regarding Employees Not Covered by Social Security The earnings exclusion for election workers will remain at $2,000 for the calendar year beginning January 1, 2022. There will be a 5.9% cost-of-living adjustment (COLA) increase for 2022. ![]() For more information on the test, see the 2022 Social Security Changes Fact Sheet. This higher exempt amount applies only to earnings made in months prior to the month of Social Security NRA attainment. For people attaining Social Security NRA in 2022, the annual exempt amount is $51,960. For people attaining Social Security NRA after 2021, the annual exempt amount in 2022 is $19,560. The Social Security Administration determines the exempt amount using procedures defined in the Social Security Act. These exempt amounts generally increase annually with increases in the national average wage index. One of two different exempt amounts applies, depending on the year one attains Social Security NRA. Social Security withholds benefits if one’s earnings exceed a certain level–called a retirement earnings test exempt amount–and one is below Social Security NRA. ![]() The retirement earnings test applies only to people below Social Security normal retirement age (NRA), which ranges from age 65 to 67, depending on year of birth. Reminder: Beginning in January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes. The rate remains at 1.45% for others who are subject only to Medicare (firefighters hired after March 1986, and who are not covered under Social Security, for example). All wages over $147,00 are subject only to the 1.45% Medicare rate. ![]() The Social Security (full FICA) rate remains at 7.65% (6.20% Social Security plus 1.45% Medicare) for wages up to $147,000. The employer and employee tax rates will remain the same in 2022. The Medicare wage base will not have a dollar limit for 2022. Social Security and Medicare Wage Bases and Rates for 2022Īs of January 1, 2022, the Social Security (full FICA) wage base will increase to $147,000. This information applies to all Wisconsin Retirement System employers and all other public employers in Wisconsin that provide Social Security coverage for their employees under Wisconsin’s Section 218 Agreement. As the designated liaison between the Social Security Administration and employers that provide Social Security coverage for their employees under the State of Wisconsin’s Section 218 Agreement, the Department of Employee Trust Funds provides the following updated information, including Social Security and Medicare wage bases for 2022. ![]()
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