Academic journal article Social Security Bulletin

Increases in Earnings Base and Exempt Earnings Amounts for 1994

Academic journal article Social Security Bulletin

Increases in Earnings Base and Exempt Earnings Amounts for 1994

Article excerpt

A number of increases affecting the Old-Age, Survivors, and Disability Insurance and the Health Insurance programs (OASDI and HI) went into effect on December 31, 1993. The changes, which were required under the Social Security Act, represent adjustments based on increases in national average wage levels.

The maximum earnings base for Social Security taxes will increase from $57,600 to $60,600; earnings above this amount will continue to be taxed for the Medicare (HI--Part A) portion. In 1993, only the first $135,000 of earnings was taxed for Medicare. However, the Omnibus Budget Reconciliation Act of 1993 (OBRA 93) repealed the limitation on the amount of earnings subject to taxation for Medicare. This amount of earnings, called the Medicare contribution base, had been subject to automatic annual increases based on increases in average annual wages. For 1994, employees and employers each will pay 1.45 percent on all earnings above the Social Security maximum limit of $60,600. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.