Thanks, guys. It is not free money looks like:
"The increase in the wage base will mean higher taxes for about 10 million of the 163 million workers who pay Social Security tax. How much more depends on whether a temporary payroll tax cut expires at the end of this year as scheduled.
The tax cut reduced the employee’s share of Social Security tax by 2 percentage points — to 4.2 from 6.2 percent — in 2011 and 2012. (The employer’s share remained at 6.2 percent.)
A worker earning at or above the wage base ($100,100 this year) saved $2,202.
Assuming the tax cut expires, the maximum Social Security tax will jump to $7,049.40 next year ($113,700 at 6.2 percent) from $4,624.20 this year ($110,100 at 4.2 percent).
Employers will pay an additional $223.20 for workers at or above the wage base."
Social Security payments to rise 1.7%, but wage base jumps 3.3% | Kathleen Pender – Net Worth Plus | an SFGate.com blog