On October 13, the Social Security Administration (SSA) announced that approximately 70 million Americans will see an 8.7 percent increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, Social Security benefits will increase by more than $140 per month starting in January.
Starting January 1, 2023, the maximum earnings subject to the Social Security payroll tax will increase to $160,200, up from the $147,000 maximum for 2022. The SSA also posted a fact sheet summarizing the 2023 cost-of-living adjustments (COLAs).
Next Steps for Employers
Employers should notify affected employees and ensure that their payroll systems are setup to account for the higher taxable wage base for Social Security payroll tax.
