VPController.com

Tag: Social Security

  • 2025 Social Security COLA Increase

    The cost of living adjustment, commonly known as COLA, is an increase in Social Security benefits designed to counteract inflation.

    In 2025, the cost-of-living adjustment (COLA) will be 2.5%. According to the Social Security Administration, Social Security and Supplemental Security Income (SSI) benefits for over 72.5 million Americans will increase by 2.5 percent in 2025.

    The average increase in Social Security cost-of-living adjustments (COLA) over the past decade is about 2.6%.

    Here are the COLA increases for the past decade:
    2025: 2.5%
    2024: 3.2%
    2023: 8.7%
    2022: 5.9%
    2021: 1.3%
    2020: 1.6%
    2019: 2.8%
    2018: 2.0%
    2017: 0.3%
    2016: 0.0%

    #Social Security
    #2025
    #COLA
    #Increase
    #CapCut
    #Shorts
    #YouTube
    #TikTok
    #Instagram
    #Facebook

  • Understanding Social Security Taxes in 2025

     

    In 2025, the Social Security payroll tax rate is 12.4%, which consists of 6.2% deducted from your paycheck and an additional 6.2% matched by your employer. For instance, if your taxable payroll income is $100,000 in 2025, the total Social Security payroll tax would be $12,400, split equally between the employee and employer, with each contributing $6,200. It’s important to note that this amount does not include the additional 2.9% total Medicare tax.

    Now, let’s examine the scenario where your income is $176,100 in 2025. In this case, your Social Security payroll tax would amount to $10,918.20, with your employer matching this amount as well. Therefore, the total contribution to Social Security would be $21,836.40.

    Finally, if you earn a million dollars in 2025, you will still pay a maximum of $10,918.20 in Social Security payroll taxes, which represents 1.1% of your income. Your employer will also contribute the same amount of $10,918.20, resulting in a total Social Security payroll tax contribution of 2.2% rate.

    If you believe this system is unfair and have concerns about the solvency of Social Security, consider informing your representatives in Congress and the President.