Social Security Figures Rise
The Social Security withholding “FICA” tax of 6.2 percent will to apply to salary up to $127,200, up from the 2016 maximum of $118,500. For FERS employees, the tax cuts off at that figure but CSRS Offset employees continue paying it, with the money going into the federal retirement fund instead. Regular CSRS employees don’t pay Social Security taxes; they pay only into the federal retirement fund. There is no limit on the 1.45 percent Medicare tax paid by all employees, a tax that sometimes is presented together with the FICA tax and labeled as the Social Security tax, even though only the FICA portion goes to Social Security. For those drawing Social Security benefits . . . Continue reading!
