Social Security Benefits to Increase in 2024
2023-11-12 – BE&O A&B
The Social Security Administration recently announced increased Social Security benefits and Supplemental Security Income (SSI) benefits. Taking effect at the start of 2024, the 3.2% increase will result in an average increase of $50 per month for recipients.
Known as a Cost of Living Adjustment (COLA), the Social Security Administration says the increase is designed to help recipients keep up with rising costs in consumer goods. With more than 71 million Americans receiving social security payments, the increase is one of the largest in the program’s history.
Courtney Kincaid, President and CEO of the Indiana CPA Society, says the increase in benefits can also impact small business owners and some of their employees. She says some workers may see increased social security deductions, impacting their tax home pay. In addition, the threshold for the maximum social security benefit has also changed with the recent increase in benefits. The maximum taxable amount has gone up from $160,000 to $168,000. However, this does not apply to self-employed taxpayers.
Kincaid encourages small business owners to talk to their tax professional or payroll preparer to fully understand how the benefit increase will impact their bottom line.
The Social Security Administration says they have already begun to send notices of the increase to benefits recipients, with most receiving the notice in the mail in December. For more information, visit https://blog.ssa.gov/category/cola.