Social Security to release 2014 COLA data next week

Government shutdown delayed annual announcement

Oct 24, 2013 @ 9:26 am

By Mary Beth Franklin

Next week, the Bureau of Labor Statistics will issue the September Consumer Price Index report, the final piece of data that the Social Security Administration needs to plug into its annual cost of living adjustment formula.

Social Security benefits — and the taxable wage base for workers — will be slightly higher next year as a result of the COLA.

The CPI was one of several key economic reports that were delayed due to the 16-day government shutdown. It is now scheduled to be released next Wednesday.

"We usually send out our COLA press release shortly after the CPI is announced by BLS in the morning," Social Security spokeswoman Kia Anderson wrote in an e-mail.

The 7.65% tax rate is the combined rate for Social Security and Medicare.

The Social Security portion, the OASDI, is 6.2% on earnings up to the applicable taxable maximum amount. The Medicare portion (HI) is 1.45% on all earnings, even those above the taxable OASDI limit.

Portions of the Social Security and Medicare taxes are paid by employers and employees for a combined payroll tax rate of 15.3%. Self-employed individuals pay both portions of the tax.

Starting this year, very high earners are subject to an additional Medicare payroll tax of 0.9% on earnings above $200,000 for single workers and $250,000 for married workers filing jointly. An employer is required to begin withholding the additional tax in the pay period when an employee's wages exceed $200,000.

The new Medicare tax, created by the Affordable Care Act to help finance expanded health care coverage, applies only to employees, not employers.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

What the next market downturn means for small RIAs

Firms that have enjoyed AUM growth because of the runup in stocks may find it hard to adjust to declining revenues if the market suffers a major correction.

DOL fiduciary rule likely to live on despite appeals court loss

Future developments will hinge on whether the Labor Department continues the fight to remake the regulation its own way.

DOL fiduciary rule: Industry reacts to Fifth Circuit ruling

Groups on both sides of the fiduciary debate had plenty to say.

Fifth Circuit Court of Appeals vacates DOL fiduciary rule

In split decision, judges say agency exceeded authority.

UBS, after dumping the broker protocol, continues to see brokers come and go

The wirehouse has seen 14 individuals or teams leave and five join for a net loss of $2.4 billion in AUM


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print