Notice 2013-72 - Notice 2013–72

Notice 2013–72

Social Security Contribution and Benefit Base for 2014

Under authority contained in the Social Security Act (Act), the Commissioner, Social Security Administration, has determined and announced (78 F.R. 66413, dated November 5, 2013) that the contribution and benefit base for remuneration paid in 2014, and self-employment income earned in taxable years beginning in 2014 is $117,000.

“Old-Law” Contribution and Benefit Base

General

The “old-law” contribution and benefit base for 2014 is $87,000.

Domestic Employee Coverage Threshold

General

The minimum amount a domestic worker must earn so that such earnings are covered under Social Security or Medicare is the domestic employee coverage threshold. For 2014, this threshold is $1,900. Section 3121(x) of the Internal Revenue Code provides the formula for increasing the threshold.

Computation

Under the formula, the domestic employee coverage threshold amount for 2014 is equal to the 1995 amount of $1,000 multiplied by the ratio of the national average wage index for 2012 to that for 1993. If the resulting amount is not a multiple of $100, it is rounded to the next lower multiple of $100.

Domestic Employee Coverage Threshold Amount

Multiplying the 1995 domestic employee coverage threshold amount ($1,000) by the ratio of the national average wage index for 2012 ($44,321.67) to that for 1993 ($23,132.67) produces the amount of $1,915.98. We then round this amount to $1,900. Accordingly, the domestic employee coverage threshold amount is $1,900 for 2014.

Note

(Filed by the Office of the Federal Register on November 1, 2013, 4:15 p.m., and published in the issue of the Federal Register for November 5, 2013, 78 F.R. 66413)