| What is the new Social Security Wage Base for the tax year 2009?
The IRS has increased the Social Security Wage Base to $106,800 for 2009. This represents an increase of $4,800 which translates into an increase in taxes of about $300 for high paid employees and a matching amount for their employers.
For self-employed taxpayers, the impact would be an increase in their taxes of $600, as they pay 15.3% of Social Security and Medicare Taxes on the first $106,800 and thereafter only 2.9% on the amounts exceeding this amount.
Of course, this may change subsequent to the elections.
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