The annual wage base used to compute FICA taxes has been announced by the Internal Revenue Service, according to Human Resources Management.
The FICA tax rate remains at 7.65 percent, which is 6.2 percent for Social Security and 1.45 percent for Medicare. However, the taxable wage base for the 6.2 percent Social Security portion of the FICA tax is indexed to increases in average national earnings, and the 1997 wage base is $65,400.
The budget reconciliation legislation, OBRA '93, removed any wage-base limit for the 1.45 percent Medicare portion of the FICA tax.
For further information, contact the Department of Human Resources Management at 325-3713.
This World Wide Web version of MSU Memo was marked up by Chris Brown <brownc@ur.msstate.edu>.
For information about Mississippi State University, contact msuinfo@ur.msstate.edu.
Last modified: Friday, 14-Jun-2002 15:59:37 CDT.
URL: http://msuinfo.ur.msstate.edu/msu_memo/1997/1-13-97/wage.htm
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