The earnings limit used to figure the Social Security tax portion of FICA and self-employment tax for 2014 is $117,000 (up from $113,700 in 2013). This hike impacts about 10 million of the 165 million workers in the U.S. There is no earnings cap for the Medicare portion of the applicable tax.
There’s a new post on my blog TODAY! Each week, you’ll find critical updates, practical help and essential information to assist you in your small business.