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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 |
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