The tax cap on workers’ income will increase
In 2021, if you’ll earn more than $142,800 then you won’t owe Social Security payroll taxes on every dollar. That’s because the maximum amount of a person’s income that is subject to these taxes will go up from $137,700 as it is currently (in 2020) to $142,800.
That being said, keep in mind that the tax rates will not change, just the thresholds. For employees, these will remain at 6.2% while employers will pay an additional 6.2%. For self-employed people, the rate will also stay at 12.4%.
1 thought on “5 Important Changes to Social Security Benefits in 2021”
What about the money that the government borrow from Social Security, that never got paid back?