Category

Social Security Administration Reports

Social Security Interest Rates Remain Constant for Third Quarter 2018

The Internal Revenue Service has announced that interest rates related to OASDI will remain the same for the calendar quarter beginning July 1, 2018. The interest rates are as follows: five percent for over-payments (four percent in the case of a corporation); five percent for underpayments; seven percent for large corporate underpayments; and two-and-one-half percent for the portion of a corporate over-payment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the over-payment and underpayment rate is the federal short-term rate plus three percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the over-payment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate over-payment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half of a percentage point.

These interest rates are computed from the federal short-term rate based on daily compounding determined during April 2018.

As always, if there are any questions please do not hesitate to contact us.

OASDI Wage Base Projected to Increase in 2019

In the Social Security Administration’s 2018 OASDI Trustees Report issued June 5, 2018, the Social Security wage base is projected to increase to $132,300 in 2019 from $128,400 in 2018.

The projection is based on the intermediate-cost assumptions in the report, the SSA said.

The wage base is the maximum amount of earnings subject to the Old-Age, Survivors, and Disability Insurance payroll tax. No increase in the wage base occurs if there is no cost-of-living adjustment effective for December of the preceding year, the SSA said.

The low-cost and the high-cost assumptions also project an increase to $132,300, the board of trustees’ annual report said.

As always, if there are any questions please do not hesitate to contact us.