SSA issues revised maximum taxable wage base for 2018

The Social Security Administration (SSA) issued a revision of the maximum taxable wage base for 2018 based on updated wage data reported to the Agency. The new wage base amount is $128,400, down $300 from the original wage base amount of $128,700 announced in October 2017.
The lower taxable maximum amount is due to corrected Forms W-2 provided to the SSA in late October 2017 by a national payroll service provider. Approximately 500,000 corrections for the Forms W-2 from 2016 resulted in changes for three items based on the national average wage: the 2018 taxable maximum, the primary insurance amount (PIA) bend points (i.e., figures used in the computation of Social Security benefits), and the family maximum bend points. No other items based on the national average wage were affected.
Note that the change to the taxable maximum does not take effect until January 2018, and the updated bend points in the benefit computation only apply to people who initially become eligible for Social Security benefits in calendar year 2018. This does not affect current beneficiaries.

Source: Social Security News Release November 27, 2017.
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