Social Security Q & A- What is the maximum wage contribution

What is the maximum wage contribution for Social Security in 2007, and what amount constitutes a credit (a quarter of coverage) for 2007?

The maximum wage contribution for 2007 was increased to $97,500 from $94,200 for 2006. The amount of earnings required to earn one credit has also increased to $1,000 per calendar quarter for 2007 from $970 per calendar quarter for 2006.

The 2007 contribution rate, also known as FICA tax, for employees and for self-employed people are: (For comparison, 2005 and 2006 rates are also shown.)

	2005	2006	2007
Employee	7.65%	7.65%	7.65%
Self-Employed	15.30%	15.30%	15.30%

Maximum Earnings Taxable:	2005	2006	2007
Social Security (OASDI* only)	$90,000	$94,200	$97,500
Maximum Tax Withheld	$5,580	$5,840.40	$6,045
Medicare (HI only)	No Limit	No Limit	No Limit

NOTE: The 7.65% rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable maximum taxable amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

*OASDI=Old Age, Survivors, and Disability Insurance