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Fact Sheet
SOCIAL SECURITY
Kenneth S. Apfel, Commissioner
1998 SOCIAL SECURITY CHANGES
- Tax Rate:
|
1997 |
1998 |
| Employee |
7.65% |
7.65% |
| Self-Employed |
15.30% |
15.30% |
NOTE: The 7.65% tax 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.
- Maximum Earnings Taxable:
|
1997 |
1998 |
| Social Security (OASDI only) |
$65,400 |
$68,400 |
| Medicare (HI only) |
No Limit |
*The maximum was eliminated by the "Omnibus Budget Reconciliation
Act of 1993."
- Quarter of Coverage:
- Retirement Earnings Test Exempt Amounts:*
|
1997 |
1998 |
| Age 65 thru 69 |
$13,500/yr |
$14,500/yr |
| |
($1,125/mo.) |
($1,209/mo.) |
|
|
|
| Under age 65 |
$ 8,640/yr |
$9,120/yr |
| |
($720/mo.) |
($760/mo.) |
*NOTE: For people age 65 through 69, $1 in benefits will be
withheld for every $3 in earnings above the limit. For people
under age 65, $1 will be withheld for every $2 in earnings above
the limit.
- Maximum Social Security Benefit: Worker Retiring at Age 65
in January of 1997 and 1998:
| 1997 |
|
1998 |
| $1,326/mo. |
|
$1,342/mo. |
- SSI Federal Payment Standard:
|
1997 |
1998 |
| Individual |
$484/mo. |
$494/mo. |
| Couple |
$726/mo. |
$741/mo. |
- SSI Resources Limits:
|
1997 |
1998 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
- Estimated Average Monthly Social Security Benefits: Before
and After the December 1997 COLA:
| |
Before 2.1% COLA |
After 2.1% COLA |
| |
|
|
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| All Retired Workers |
$ 749 |
$ 765 |
| Aged Couple, Both Receiving Benefits |
$1,261 |
$1,288 |
|
|
| Widowed Mother and Two Children |
$1,491 |
$1,522 |
|
|
| Aged Widow(er) Alone |
$ 716 |
$ 731 |
| Disabled Worker, Spouse and One or More Children
|
$1,173 |
$1,198 |
|
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| All Disabled Workers |
$ 707 |
$ 722 |
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www.socialsecurity.gov
