This month the Social Security Administration just announced a 2.5% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2025, another rate drop compared to last year's increase of 3.2%. The increase is based on the rise in the Consumer Price Index over the last year ending in September 2024.
According to the Comissioner of Social Security Martin O’Malley: “Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool.”
Diamond Head Tax Group OAHU will explain what this means for you and how you can make the most out of the 96795 HONOLULU 2025 Social Security Benefits and Supplemental Security Income (SSI) Payments Increase by 2.5%. Our services will help HONOLULU Small-Business Owners and Individuals determine if the benefits will apply to them and allow them to maximize these benefits for 2025.
Social Security Administration Video Announcing Social Security Benefits Increase in 2025
Keep Up With Expenses Thanks to 96795 HONOLULU 2025 Social Security Benefits and Supplemental Security Income (SSI) Payments Increase by 2.5%
Early October 2024 the Social Security Administration announced that Social Security benefits and Supplemental Security Income (SSI) payments for more than 72.5 million Americans will increase 2.5% in 2025. On average, Social Security retirement benefits will increase by about $50 per month starting in January.
Over the last decade the cost-of-living adjustment (COLA) increase has averaged about 2.6%. The COLA was 3.2% in 2024.
Nearly 68 million Social Security beneficiaries will see a 2.5% COLA beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024.
For those contributing to Social Security through wages, the potential maximum income subject to Social Security taxes is increasing to $176,100. This represents a 4.4% increase in Social Security taxes, with the percent increase in income subject to tax is much higher than the benefit increase.
Another improvement in 2025 is the SSA’s redesign of the COLA notice. Beneficiaries will now receive a simplified, one-page document with personalized information about their benefit changes, making it easier to understand their new payment amounts and any applicable deductions. Beneficiaries with a “My Social Security” account can access this information online before receiving the mailed notice, providing quicker access to critical updates.
These changes reflect the SSA’s ongoing effort to streamline communication and improve the user experience, making it easier for beneficiaries to manage their benefits.
What This Means For You: 96795 HONOLULU 2025 Social Security Benefits and Supplemental Security Income (SSI) Payments Increase by 2.5%
Up to $176,100 in wages will be subject to Social Security taxes, an increase of $7,500 from 2024. This amounts to $10,918.20 in maximum annual employee Social Security payments - an increase of $465.
Any excess Social Security taxes paid because of having multiple employers can be returned to you as a credit on your tax return.
For retired workers receiving Social Security retirement benefits, the estimated average monthly benefit will be $1,976 per month in 2025, an average increase of $49 per month.
To qualify for the 96795 HONOLULU 2025 Social Security Benefits and Supplemental Security Income (SSI) Payments Increase by 2.5% you must have little income and few resources - $2,000 if single, $3,000 if married.
Plan Accordingly with Diamond Head Tax Group OAHU
Diamond Head Tax Group OAHU Tax Experts will help you claim Social Security Benefits and plan ahead to make the most out of this development.
For businesses and employers, particularly those managing payroll for employees receiving Social Security benefits, these changes require adjustments in payroll processes. Diamond Head Tax Group OAHU's Payroll Services will help businesses make the necessary adjustments.
The increase in the taxable maximum and changes to the earnings limits will impact payroll deductions and reporting requirements. Employers must stay informed about these changes to avoid compliance issues and ensure that deductions and withholdings are handled correctly.
For Social Security and Medicare Rates the Social Security and Medicare tax rates do not change from 2024 to 2025. The rates are 6.20 percent for Social Security and 1.45 percent for Medicare. There is also a 0.9 percent Medicare wages surtax for single taxpayers with wages above $200,000 or $250,000 for joint filers that is not reflected in these figures.
Employer also pay a 6.2 percent Social Security tax and a 1.45 percent Medicare tax on the behalf of their employees. These amounts are reflected in the self-employment tax rate of 15.3%, as self-employed individuals pay both halves of the tax rate.
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Why Choose DIAMOND HEAD TAX GROUP CPA Services HONOLULU?
As Honolulu continues to expand, we continue to be the trusted local Oahu CPA firm. We are Located in the heart of Honolulu, and are focused on delivering professional and quality CPA Services to the small businesses and residents in Honolulu, Oahu.
We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we are here to provide you the financial guidance you seek.
When you partner with Diamond Head Tax Group, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and excellent client services.
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