please delete, someone helped me in another thread. : )

[annie1]

[dbackjon]

1. Everyone is taxed at 6.5% on income UP TO $97K

After that, there is NO TAX. The same applies to the employer's SS tax of 2.5 (?)%.


So even a person making 10K pays Social Security tax of 6.5%

[annie1]

2. gotcha. thanks.

[maddezmom]

3. and in 2008 it caps at $102,00

http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_faqid=240&p_created=956850562&p_sid=JCBvkYVi&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD0yNywyNyZwX3Byb2RzPSZwX2NhdHM9OSZwX3B2PSZwX2N2PTEuOSZwX3NlYXJjaF90eXBlPWFuc3dlcnMuc2VhcmNoX25sJnBfcGFnZT0x&p_li=&p_topview=1

The 2008 contribution rate, also known as FICA tax, for employees and for self-employed people are:
(For comparison, 2006 and 2007 rates are also shown.)

2006 2007 2008
Employee 7.65% 7.65% 7.65%
Self-Employed 15.30% 15.30% 15.30%
Maximum Earnings Taxable: 2006 2007 2008
Social Security (OASDI* only) $94,200 $97,500 $102,000
Maximum Tax Withheld $5,840.40 $6,045 $6,324
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