02-P-015 Change in Social Security Base Rate (Supersedes 01-p-017)
|DATE:||October 25, 2001|
|SUBJECT:||Change in Social Security Base Rate|
|EFFECTIVE DATE:||January 1, 2002|
|SUMMARY:||Social Security Wage Base Increase to $84,900 effective January 1, 2002|
The Social Security wage base for OASDI will be $84,900 for calendar year 2002. This is a $4,500 increase from the 2001 wage base of $80,400. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2002 will be $5,263.80. There continues to be no limit on wages subject to the Medicare tax in 2002. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,263.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.