Business, Legal & Accounting Glossary
Cost-of-Living Adjustment. An annual adjustment in wages to offset a change (usually a loss) in purchasing power, as measured by the Consumer Price Index. The Consumer Price Index is used rather than the Producer Price Index because the purpose is to offset inflation as experienced by the consumer, not the producer. For 2016, there is no COLA so the maxiumum taxable amount subject to the Social Security tax remains $118,500.
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This glossary post was last updated: 14th November, 2021 | 0 Views.