Mobility

February 2017

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adjustment (COLA) in benefi ts has been approximately 2 percent, with a high of 5.8 percent in 2009. The modest increase took eff ect on January 1 for Social Security ben- efi ts and December 30, 2016, for Supplemental Income Security benefi ts. For more information on the COLA, please access https://www.ssa.gov/news/cola/. SOCIAL SECURITY WAGE BASE In regard to the maximum amount of earnings, often referred to as the wage base, subject to the Social Security tax, the amount for 2017 increased from $118,500 to $127,200. Please note that there is no limit on the amount of wages subject to the Medicare portion of the tax. The rise in the wage base appears very large, and SSA offi cials have off ered no explanation for the size of the increase other than that it is the result of calculations under the prescribed formula. The eff ect, however, will be to substantially increase Social Security taxes for many employees and their employers. The SSA estimates that 12 million of the 173 million workers in the United States will pay additional tax as a result of the adjustment. For more information on tax issues impacting work- force mobility, please consider attending the meeting of the Worldwide ERC ® Government Aff airs Tax Forum on May 17 and the Government Aff airs Update session on May 18 in Atlanta as part of the Americas Mobility Conference. You can also access additional tax resources at WorldwideERC.org/gov-relations/us-tax-legal-resources/ Pages/tax-index.aspx. M Peter Scott, Worldwide ERC ® tax counsel and principal of Peter K. Scott Associates, can be reached at +1 910 579 5332 or pscott@WorldwideERC.org. Tristan North, Worldwide ERC ® government aff airs adviser, can be reached at +1 703 610 0216 or tnorth@WorldwideERC.org. WorldwideERC.org | Mobility 29 MoveBuilder ® relocation services are now offered under the ArcBest SM brand. We'd like to reintroduce ourselves. Learn more at arcb.com/simplify Corporate relocation at its best. We'll Find A Way. | 877-450-3608 ©2017 ArcBest Corporation ® . All rights reserved. All service marks featured in this advertisement are the property of ArcBest Corporation and its subsidiaries.

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