Give and Take at the SSA


Starting in January 2008, the maximum earnings subject to Social Security tax will rise 4.6%, from $97,500 to $102,000, marking the first time the taxable maximum exceeds $100,000. The Social Security Administration expects nearly 12 million workers will pay higher taxes as a result. The $4,500 increase in maximum taxable earnings surpasses the $3,300 increase from 2006 to 2007.

On a salary of $102,000 or more, the Social Security tax in 2008 will be $6,324, up $279 from 2007’s maximum of $6,045. The tax rate of 6.2%, established in 1990, will not change.

The SSA also announced a 2.3% cost-of-living adjustment on benefits payments in 2008 based on the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers .

Source: Social Security Administration, www.ssa.gov.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.