• Tax Rate:

1999

2000

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:

Social Security (OASDI only)

$72,600

$76,200

Medicare (HI only)

N o L i m i t

N o L i m i t

• Quarter of Coverage:

$ 740

$ 780

• Retirement Earnings Test Exempt Amounts:

As of January 2000, the Retirement Earnings Test has been eliminated for individuals age 65-69. It remains in effect for those ages 62 through 64. A modified test applies for the year an individual reaches age 65. (The Senior Citizens' Freedom To Work Act of 2000, signed into law by President Clinton on April 7, 2000.)

2000

$17,000/yr.($1,417/mo.)

Applies only for months prior to attaining age 65. One dollar in benefits will be withheld for every $3 in earnings above the limit.

There is no limit on earnings beginning the month an individual attains age 65.

$10,080/yr.($ 840/mo.)

One dollar in benefits will be withheld for every $2 in earnings above the limit.

1999

• Maximum Social Security Benefit: Worker Retiring at Age 65 in January of 1999 and 2000:

$1,373/mo.

$1,433/mo.

• SSI Federal Payment Standard:

Individual

$500/mo.

$512/mo.

Couple

$751/mo.

$769/mo.

• SSI Resources Limits:

Individual

$2,000

$2,000

Couple

$3,000

$3,000

• Estimated Average Monthly Social Security Benefits: Before and After the December 1999 COLA:

Before 2.4% COLA

After 2.4% COLA

All Retired Workers

$ 785

$ 804

Aged Couple, Both Receiving Benefits

$1,316

$1,348

Widowed Mother and Two Children

$1,573

$1,611

Aged Widow(er) Alone

$ 757

$ 775

Disabled Worker, Spouse and One or More Children

$1,225

$1,255

All Disabled Workers

$ 736

$ 754