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NOTICE
2007 Social Security Medicare Tax Withholding
For 2007, the maximum limit on earnings for withholding
in the Old-Age, Survivors, and Disability (OASDI) portion of
the Social Security tax increases from $94,200 to $97,500.
This is a $3,300 increase from the 2006 limit. The Social
Security tax rate remains at 6.2 percent, resulting in a maximum Social Security tax of $6,045. This is a $204.60
increase from the 2006 limit of $5,840.40. There is still no
limit on the amount of earnings subject to the Medicare portion of the tax rate. The Medicare tax rate applies to all taxable wages, and remains at 1.45 percent. The Federal
Insurance Contribution Act (FICA) tax rate, which is the
combined Social Security tax rate of 6.2 percent and the
Medicare tax rate of 1.45 percent, remains at 7.65 percent
for 2007.
The information in the following table is effective
January 1, 2007.
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Limit
|
From 2006
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To 2007
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Social Security
Gross
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$94,200.00
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$97,500.00
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Social Security
Liability
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$5,840.40
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$6,045.00
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Medicare Gross
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No Limit
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No Limit
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Medicare Liability
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No Limit
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No Limit
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— Payroll,
Finance, 10-26-06
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