04-08-2005, 10:25 PM
Hellow all, another Federal Retirement Article:
For FERS employees, the Social Security maximum wage base is rising to $90,000 from $87,900. That is the portion of their salaries on which they pay the 6.2 percent “FICA” tax—there is no limit on the 1.45 percent Medicare tax paid by both FERS and CSRS employees. Also, for those retired under FERS, the earnings test applying to Social Security beneficiaries aged 62-through “full retirement age”--for 2005 is 65 and six months--is increasing to $12,000 from $11,640. Those beneficiaries lose $1 in Social Security benefits for every $2 in earnings through employment or self-employment above the limit. A separate earnings test applies only to earnings for months in the year an individual reaches full retirement age prior to the individual attaining that age. One dollar in benefits will be withheld for every $3 in earnings above $31,800. There is no limit on earnings beginning the month an individual attains full retirement age.
Good luck all.....:)
Barb
For FERS employees, the Social Security maximum wage base is rising to $90,000 from $87,900. That is the portion of their salaries on which they pay the 6.2 percent “FICA” tax—there is no limit on the 1.45 percent Medicare tax paid by both FERS and CSRS employees. Also, for those retired under FERS, the earnings test applying to Social Security beneficiaries aged 62-through “full retirement age”--for 2005 is 65 and six months--is increasing to $12,000 from $11,640. Those beneficiaries lose $1 in Social Security benefits for every $2 in earnings through employment or self-employment above the limit. A separate earnings test applies only to earnings for months in the year an individual reaches full retirement age prior to the individual attaining that age. One dollar in benefits will be withheld for every $3 in earnings above $31,800. There is no limit on earnings beginning the month an individual attains full retirement age.
Good luck all.....:)
Barb