When: Who it Affects: |
Social Security contribution limit goes up Every year, the Internal Revenue Service makes an inflation adjustment for contributions workers must make to the Social Security system. For 2002, the rate is 6.2% of your first $84,900 in wages or salary, up from $80,400 in 2001. Once you reached $84,900, you should not have paid any more into the system for the rest of the year. Your employer must match the tax. In 2003, the income limit rises to $87,000. For self-employed people, the Social Security rate is 12.4%. You also pay 1.45% of all your wages or salary in Medicare tax -- 2.9% if you are self-employed. |
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