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 2001, the rate is 6.2% of your first $80,400 in wages or salary, up from $76,200 in 2000. Once you reach $80,400, you dont pay into the system any more for the year. Your employer must match the tax. The wages ceiling rises to $84,900 in 2002. 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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