Reply #2: The top wage rate that payment for social security stops....

[whistle]

...is now $90,000.00 I believe. It would actually solve the problem if the cap was set at $250,000.00 which would capture 98% of all wage earners:


Category.................... 1999 2000 2001 2002 2003 2004
20th percentile upper limit 17196 17920 17970 18020 18070 18121
50th (median)................. 40816 42000 42100 42200 42301 42401
80th percentile upper limit 79375 81766 83500 85271 87079 88926
95th percentile lower limit 142021 145220 150499 155970 161640 167516



<snip> For the University of Utah

Payroll Tax Deductions

Social Security and Medicare Tax

The FICA tax rate, which is the combined social security tax rate of 6.2% (FICA) and the Medicare tax rate of 1.45% (FICA-MD HI). Student-Employee might be exempted from FICA tax, Application for Student FICA exempted.

The Social Security Administration has announced that the 2005 social security wage base will be $90,000, up from the 2004 wage limit of $87,900. The maximum social security tax employees and employers will each pay in 2005 is $5,580.00. This is an increase of $130.20 from the 2004 maximum of $5,449.80. There is no limit on the wages subject to the Medicare tax, therefore, all covered wages are subject to the 1.45% Medicare tax. For more information, visit the Social Security Administration Home Page. General information help line 1-800-772-1213, and BBS 1-410-965-1133 via modem.


Social Security Tax Rate and Wage Base
Year FICA Base FICA Rate FICA Max Med-HI
2004 $87,900 6.2% $5,449.80 1.45%

2003 $87,000 6.2% $5,394.00 1.45%

2002 $84,900 6.2% $5,263.80 1.45%

2001 $80,400 6.2% $4,984.80 1.45%

2000 $76,200 6.2% $4,724.40 1.45%

1999 $72,600 6.2% $4,501.20 1.45%

1998 $68,400 6.2% $4,240.80 1.45%


<more> http://www.payroll.utah.edu/tax_deductions.html