The 2004 Social Security wage base will be $87,900 [an increase of $900.00 from the 2003 wage base of $87,000]. This means that taxable wages up to $87,900 will be subject to withholding of FICA and Medicare tax (total 7.65% of wages), and a maximum of $5,449.80 will be withheld from your income for Social Security taxes (an increase of $55.80). Wages over $87,900 are subject only to the Medicare tax (at 1.45%).
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