In October, the Social Security Administration made its usual announcement about changes in the maximum salary level subject to the Social Security tax. The new figure was $128,700, an increase of $1,500 over the old limit.
However, in late November, the SSA took the unusual step of lowering this figure from $128,700 to $128,400. This makes it slightly easier to hit the ceiling than the previously announced figure. However, it is still higher—by $1,200—than the 2017 figure.
Why the change? The SSA bases these decisions on annual wage data, and much of it was late this year.
Fortunately, companies still have about a month to update their systems to reflect this revision.