The maximum wage contribution for 2008 was increased to $102,000 from $97,500 for 2007. The amount of earnings required to earn one credit has also increased to $1,050 per calendar quarter for 2008 from $1000 per calendar quarter for 2007.
The 2008 contribution rate, also known as FICA tax, for employees and for self-employed people are:
(For comparison, 2006 and 2007 rates are also shown.)
|
2006 |
2007 |
2008 |
| Employee |
7.65% |
7.65% |
7.65% |
| Self-Employed |
15.30% |
15.30% |
15.30% |
| Maximum Earnings Taxable: |
2006 |
2007 |
2008 |
| Social Security (OASDI* only) |
$94,200 |
$97,500 |
$102,000 |
| Maximum Tax Withheld |
$5,840.40 |
$6,045 |
$6,324 |
| Medicare (HI only) |
No Limit |
No Limit |
No Limit |
NOTE: The 7.65% rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable maximum taxable amount (see below). The Medicare portion (HI) is 1.45% on all earnings.
*OASDI=Old Age, Survivors, and Disability Insurance
|
www.socialsecurity.gov
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