Social Security wage Base - Update

[TAX]

Social Security Wage Base Rises to $102,000 in 2008
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.

The social security wage base for self-employed individuals in 2008 will also be $102,000. There is no limit on covered self-employment income that will be subject to the Medicare tax. The self-employment tax rate remains 15.3% (combined social security tax rate of 12.4% and Medicare tax rate of 2.9%). In 2008, the maximum social security tax for a self-employed individual will be $12,648.00. This is an increase of $558.00 from the 2007 maximum of $12,090.00.

FICA coverage threshold increases for domestic, election workers
The threshold for coverage under social security and Medicare for domestic employees will be $1,600 in 2008, up from $1,500 in 2007; the coverage threshold for election workers will be $1,400 in 2008, up from $1,300 in 2007

[Black Bart]

Thank you, TAX,

Social Security Wage Base Rises to $102,000 in 2008
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.

for furnishing this timely information. Somebody needs to/has to keep us updated, so I and (I'm sure) your fellow boarders thank you very much.

Unfortunately, I (once again) am not going to bump my head up against that ceiling. This has remained a sore spot for me since the early seventies, at which time I stood more than a snowball's chance in Hades of actually reachin' that limit ('72-$9,000/ '73-$10,800/ '74-$13,200). Just when victory was within my grasp, they started raisin' it a thousand, two thousand, then three thousand per year. This elusive financial will-of-the-wisp began to recede, stretching away into the distance like a row of telephone poles in the desert until it faded into an economic Never-Neverland totally removed from the reality of Arkansas boonie wages.

Now, at $102K, the only way I'm gonna hit it is if my life insurance kicks in (and that doesn't really count). What's the point of my post, you might reasonably ask? I don't know. My wife says I just "like to complain." But, be that as it may, thanks anyway.

Yours truly -- Black Bart

P.S. Do you think it'd do any good for me to buy Chauncey Hutter's $1,000 bill of goods...or maybe to start sellin' Amway, or....hmm...(must be some way)... to get there from here....???