08-P-009 Change in Social Security Base Rate (Supersedes 07-P-009)
|DATE:||October 22, 2007|
|SUBJECT:||Change in Social Security Base Rate|
|EFFECTIVE DATE:||January 1, 2008|
|CONTACT:||Sunni Zentner||(785) 296-7058||sunni.zentner @da.ks.gov|
|SUMMARY:||Social Security Wage Base Increase to $102,000 effective January 1, 2008|
The Social Security wage base for OASDI will be $102,000 for calendar year 2008. This is a $4,500 increase from the 2007 wage base of $97,500. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2008 will be $6,324. There continues to be no limit on wages subject to the Medicare tax in 2008. 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 $6,324 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 the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.