After a three year long hiatus without an increase to the Social Security wage base, 2012 saw an increase of 3.1% increasing the 2012 wage base to $110,000 from $106,800. In 2009 the Social Security wage base jumped up 4.7% from the 2008 Social Security wage base of $102,000 to $106,800. Although the wage base of $106,800 held steady for three years, the next few years predict a steady increase in the Social Security wage base. Informal projections will likely bring consistent increases to the Social Security wage base over the course of the next few years. Projected increases are as follows:
Wage earners are required to pay 4.2% of their wages until their salary reaches the wage base established for the current year. Employers will pay 6.2% on these wages. The 2% decrease in employee social security has been extended through the end of 2012. If the tax cut is not extended for subsequent years, wage earners will be required to have 6.2% of their wages withheld until the current years wage base is met.