Social Security
Wage Base
The Social Security Administration (SSA) announced on
Wednesday, October 17, 2007, that the 2008 social security
wage base
will be $102,000, an increase of $4,500 from the 2007 wage
base of
$97,500. As in prior years, there is no limit to the wages
subject to
the Medicare tax; therefore, all covered wages are still subject
to
the 1.45% tax.
The FICA tax rate, which is the combined social security
tax
rate of 6.2% and the Medicare tax rate of 1.45%, remains
at 7.65% for
2008. The maximum social security tax employees and employers
will
each pay in 2008 is $6,324.00. This is an increase of $279.00
from the
2007 maximum of $6,045.00.
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