A video protest sign on a truck paid by the patriotic millionaires exceeds a mansion held by the founder of Amazon Jeff Bezos as part of a federal demonstration of the declaration day to demand from his just taxes in Washington on May 17, 2021.
Jonathan Ernst | Reuters
Most workers can expect to see Social Security payroll taxes Taken from their pay checks throughout the year.
But senior employees with a million dollars in gross annual salary have already ceased to pay the program on March 6, according to the Economic and Political Research Center.
In 2025, workers were subject to taxes on payroll on up to $ 176,100 in gains. Workers pay a social security tax rate of 6.2%, which is equaled by their employers, for a total of 12.4%.
Once the high wages have reached this $ 176,176 100 ceiling, they no longer contribute to the program for the rest of the year.
“Elon Musk has already reached this $ 176 100 ceiling in the first minutes of 2025 just on gross annual salary income,” said Emma Curchin, research assistant at the Center for Economic Research.
This does not include the placement income he wins, which is not subject to taxes on social security pay, she said.
Approximately 6% of workers have profits on the maximum taxable, according to the social security administration.
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In the end, the higher wages that contribute to the program to the highest taxable income each year for most of their careers to receive the Maximum retirement advantage.
In 2025, the maximum social security service for a worker retiring at the full retirement age is $ 4,018 per month.
Meanwhile, the average monthly retirement worker is $ 1,976 per month in 2025.
Congress could reflect on eliminating the payroll tax ceiling
While social security fiat funds face an imminent insolvency date, certain proposals have suggested eliminating or lifting the ceiling on profits subject to payroll tax.
Last year, social security administrators planned the fund on which the program relies on to pay retirement services Until 2033. At that time, 79% of the expected services will be payable.
To prevent these service gains, the congress may consider a variety of tax increase or service reductions.
A recent investigation revealed that Most popular strategy option would be to eliminate the payroll tax ceiling for profits of more than $ 400,000, according to the National Academy of Social Insurance, AARP, the National Institute on withdrawal Security and the Chamber of Commerce of the United States. The change would not bring additional advantages to high employees who are affected.
The survey also revealed that the Americans would be open to higher taxes to ensure that the services remain the same or increase.
“They are ready to pay more, not to obtain additional advantages for themselves, but just to fill the financing lake to prevent reductions in blind advantages at all levels,” said Tyler Bond, research director for the National Institute We withdraw Security, said CNBC.com previously.
Another survey on change, privileged respondents are social benefits for people with higher retirement income for the exclusion of social security. This would apply to individual retirees with $ 60,000 or more outside social security per year and couples married to $ 120,000 per year.
“By removing the ceiling, the social security fund could be much healthier and safe,” said Curchin.
But it is not enough. To restore the solvency of the program, research has shown that a combination of changes would be necessary.
