The Social Security Administration has announced that the 2016 taxable wage base for the Social Security portion of FICA will remain $118,500. The 6.2% Social Security tax is payable by both employers and employees; in 2016, the maximum tax is $7,347. This is the first time since the 2009 - 2011 period where the wage base has stagnated for more than one fiscal period.
Keep in mind that there is no ceiling to the Medicare tax which is currently at 1.45% of earnings. The tax increases to 2.35% for employee earnings in excess of $200,000.
Curious about historical wage bases? Check out the link below and explore how your social security contributions are working for you: