HRMG Blog – Sage Abra Payroll, HR, & Timekeeping News

The Social Security Administration (SSA) announced on Wednesday, October 17, 2007, that the 2008 social security wage base will be $102,000, an increase of $4,500 from the 2007 wage base of $97,500. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.

The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2008. The maximum social security tax employees and employers will each pay in 2008 is $6,324.00. This is an increase of $279.00 from the 2007 maximum of $6,045.00.

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The Philadelphia Department of Revenue announced that effective January 1st, 2008, the city tax will decrease to 4.219% for residents and 3.7242% for non-residents.

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