Do your higher-paid employees know they’re going to have more taken out of their paychecks in 2009? Do they know why?

The Social Security Administration just released its 2009 taxable wage base, which climbs $4,800 over the prior year. That means high-wage earners will pay Social Security taxes (6.2%) on the first $106,800 of their income before Payroll can stop withholding those taxes. The Medicare tax (1.45%) has no ceiling. 

To put that into real dollars, tell them the maximum Social Security tax employees will pay in 2009 is $6,621.60.

 And for those on the brink of retirement …

 Those nearing retirement may be interested in how much Social Security they’ll collect each month. The answer depends on what SSA determines is their “full retirement age.” For instance, someone retiring in January 2009 at SSA’s threshold age will receive a maximum monthly benefit of $2,323. 

To find help employees figure out their Social Security retirement benefits, direct them to the SSA retirement-planner Web page.

Tags: medicare, retirement, social security, tax