Do You Make $176,100 or More? You Could Have to Pay Social Security Payroll Taxes on Thousands of Dollars of Additional Earnings in 2025

Social Security changes typically occur every year. One of the most anticipated changes is the annual cost-of-living adjustment (COLA), which determines how much Social Security benefits will increase the following year. However, another change can affect a much larger portion of the population than retirees.I am, of course, referring to the payroll taxes workers have withheld from their paychecks to fund the Social Security program. People pay into the program while they work and reap the benefits when they retire. A fairly significant change is coming to the earnings subject to Social Security taxes. High-income earners could be taxed on thousands of dollars of additional income in 2025.Payroll taxes fund much of the Social Security program. Employers and employees each pay a 6.2% tax on eligible earnings, while self-employed workers must cover the full 12.4% themselves. In 2023, payroll taxes surpassed $1.2 trillion and covered 91.3% of Social Security's revenue.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool