FICA Withholding For 2010

Department of the Treasury Internal Revenue Service said there is no change in FICA withholding for 2010. With no increase in the Consumer Price Index (CPI-W) from the third quarter of 2008 to the third quarter of 2009, the maximum taxable earnings subject to Social Security withholding will remain $106,800 for 2010.

Social Security beneficiaries who haven’t reached full retirement age can earn $14,160 before their benefits are reduced. For every $2 they earn over $14,160 before the year of their full retirement age, $1 is withheld from their benefits.