Social Security Announces 2.7 Percent Benefit Increase for 2005

SSA announced on Tuesday, October 19, 2004 that the 2005 social security wage base will be $90,000, an increase of $2,100 from the 2004 wage base of $87,900. 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.

How do we track exempt employees time?

Social Security Trustees Issue Annual Report With Projected Wage Bases. The report estimates that the social security wage base will increase to $89,700 in 2005.

Employer Assessed $175,000 in Penalties for Not Using EFTPS to Deposit Payroll Taxes. A taxpayer that does not make deposits "as required" is considered to have made an "underpayment of deposit."