From 24/7 Wall St. · Gerelyn Terzo · · 1m
Silicon Valley Pay Boosts Social Security Shortfall
A $70,000 raise at Microsoft may add just $62 to Social Security benefits.
In brief
A $70,000 raise at Microsoft may add just $62 to Social Security benefits. High earners in 2026 see most pay increases not credited to Social Security benefits. Originally reported by 24/7 Wall St..
Social Security Tax Cap
Social Security taxes and credits wages up to $184,500 annually for 2026.
Microsoft Pay Raise
Senior engineers at Microsoft earn base salaries of $237,600 in high-cost markets.
Earnings Record Impact
Only $14,500 of a $70,000 raise credits Social Security benefits for 2026.
Monthly Benefit Boost
The $14,500 raise adds about $35 monthly to Social Security benefits.
Annual Benefit Increase
The $35 monthly boost equals about $62 annually before COLAs and claiming age.
Tax Savings
The cap saves $3,441 in Social Security tax compared to taxing $240,000 at 6.2%.
Retirement Savings Strategy
Workers 60-63 can add $11,250 to 401(k) catch-up contributions for retirement.
The bottom line
High earners in 2026 see most pay increases not credited to Social Security benefits.
