Reminder: Wage Base Has Increased

This is to remind employers in both government and private sectors that on January 1, 2008, the maximum taxable wage base increased from the $5,000 to $6,000.
The maximum taxable wage base is the part of a person’s earnings within a quarter that is taxed by the FSMSSA. In other words, beginning January 1, 2008, only the first $6,000 earned in a quarter will be taxed.
This change is mandated by Public Law 14-86, which was passed on October 23, 2006. The intention of the amendment is to maintain a level that covers approximately 90% of all wages covered by the system. If this level is not maintained, the System may fall out of balance with the economy and will not function as intended. In addition, it appears the percentage will continue falling as wages gradually increase from year to year. It is in this regard that it is only appropriate for the wage base to be periodically increased to maintain at a level that covered 90% of all wages.

• FSMSS Proposes
  C.B. 15-52
• Ferney S. Perman
  Donates Hut
• Reminder: Wage
  Base Increase
• CY 07 Summary
  Report