For High Earners, FICA Taxes Increase in 2006

Highly-paid wage earners will see a moderate increase in the wage base on which Social Security taxes are due for 2006, according to CCH, a provider of tax and payroll information and software (hr.cch.com). The 2006 wage base of $94,200 is $4,200 higher than the 2005 amount, and the maximum additional Social Security tax that might be collected on someone earning above the 2005 wage base is $260.40. This is the largest increase since 2002 in both dollars and in percentage, and reflects the largest increase in national average wages since 2000.

For High Earners, FICA Taxes Increase in 2006
Source: Financial-Planning.com