What are the tax, benefit, and earning amounts for 2004?
The Social Security cost-of-living (COLA) increases for 2004 were announced on October 16, 2003. 2004 SOCIAL SECURITY CHANGES Cost-of-Living Adjustment (COLA): based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2002 through the third quarter of 2003, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.1 percent COLA for 2004. Other important 2004 Social Security information is as follows. Tax Rate 2003-2004: Employee 7.65%, Self-Employed 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 taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Maximum Earnings Taxable: 2003-2004 Social Security (OASDI only): $87,000-$87,900, Medicare (HI only): no limit Quarter of Coverage: 2003 2004 Earnings required $890 $900 Retirement Earnings Test Exempt Amounts: 2003 2004 Under full reti
