Tuesday, November 20, 2007

Social Security Contribution and Benefit Base

The Social Security Administration has announced that the contribution and benefit base for remuneration paid in 2008 and self-employment income earned in tax years beginning in 2008 is $102,000. The "old law" contribution and benefit base for 2008 is $75,900. The "old law" base is used by the Railroad Retirement program to determine certain tax liabilities and tier II benefits, by the Pension Benefit Guaranty Corporation to determine the maximum amount of pension guaranteed under ERISA, and by the Social Security Administration to determine a year of coverage in computing certain benefits. Further, the minimum amount a domestic worker must earn so that such earnings are covered under Social Security or Medicare is $1,600 for 2008.

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