TN 5 (01-01)

RS 01801.100 Maximum Self-Employment Income and Cumulative Social Security Taxes Paid on SEI

EXHIBIT

Year

RSDI
RATE
%

HI
RATE
%

Maximum
SE Income
Taxable

Maximum
Annual Tax
Contribution

Taxes Paid
Cumulative
Total

1951

2.25

None

$ 3,600.00

$      81.00

$       81.00

1952

2.25

     “

$ 3,600.00

$      81.00

$     162.00

1953

2.25

     “

$ 3,600.00

$      81.00

$     243.00

1954

3.0

     “

$ 3,600.00

$    108.00

$     351.00

1955

3.0

     “

$ 4,200.00

$    126.00

$     477.00

1956

3.0

     “

$ 4,200.00

$    126.00

$     603.00

1957

3.375

     “

$ 4,200.00

$    141.75

$     744.75

1958

3.375

     “

$ 4,200.00

$    141.75

$     866.50

1959

3.75

     “

$ 4,800.00

$    180.00

$  1,066.50

1960

4.5

    “

$ 4,800.00

$    216.00

$  1,282.50

1961

4.5

     “

$ 4,800.00

$    216.00

$  1,498.50

1962

4.7

     “

$ 4,800.00

$    225.60

$  1,724.10

1963

5.4

     “

$ 4,800.00

$    259.20

$  1,983.30

1964

5.4

     “

$ 4,800.00

$    259.20

$  2,242.50

1965

5.4

     “

$ 4,800.00

$    259.20

$  2,501.70

1966

5.8

      .35

$ 6,600.00

$    405.90

$  2,907.60

1967

5.9

      .50

$ 6,600.00

$    422.40

$  3,330.00

1968

5.8

     .60

$ 7,800.00

$    499.20

$  3,829.20

1969

6.3

      .60

$ 7,800.00

$    538.20

$  4,367.40

1970

6.3

      .60

$ 7,800.00

$    538.20

$  4,905.60

1971

6.9

      .60

$ 7,800.00

$    585.00

$  5,490.60

1972

6.9

      .60

$ 9,000.00

$    675.00

$  6,165.60

1973

7.0

    1.00

$10,800.00

$    864.00

$  7,029.60

1974

7.0

      .90

$13,200.00

$ 1,042.80

$  8,072.40

1975

7.0

      .90

$14,100.00

$ 1,113.90

$  9,186.30

1976

7.0

      .90

$15,300.00

$ 1,208.70

$ 10,395.00

1977

7.0

      .90

$16,500.00

$ 1,303.50

$ 11,698.50

1978

7.1

    1.00

$17,700.00

$ 1,433.70

$ 13,132.20

1979

7.05

    1.05

$22,900.00

$ 1,854.90

$ 14,987.10

1980

7.05

    1.05

$25,900.00

$ 2,097.90

$ 17,085.00

1981

8.00

     1.30

$29,700.00

$  2,762.10

$ 19,847.10

1982

8.05

     1.30

$32,400.00

$  3,029.40

$ 22,876.50

1983

8.05

     1.30

$35,700.00

$  3,337.95

$ 26,214.45

1984

(11.40)

    (2.60)*

$37,800.00

$  4,271.40

$ 30,485.85

1985

(11.40)

    (2.70)*

$39,600.00

$  4,672.80

$ 35,158.65

1986

(11.40)

    (2.90)*

$42,000.00

$  5,166.00

$ 40,324.65

1987

(11.40)

    (2.90)*

$43,800.00

$  5,387.40

$ 45,712.05

1988

(12.12)

    (2.90)*

$45,000.00

$  5,859.00

$ 51,571.05

1989

(12.12)

    (2.90)*

$48,000.00

$  6,249.60

$ 57,820.65

1990

15.3

 

$51,300.00

$  7,848.90

$ 65,669.55

1991

15.3

 

$53.400.00

$  8,170.20

$ 73,839.75

1992

15.3

 

$55,500.00

$  8,491.50

$ 82,331.25

1993

15.3

 

$57,600.00

$  8,812.80

$ 91,144.05

1994

15.3

 

$60,600.00

$  9,271.80

$100,415.85

1995

15.3

 

$61,200.00

$  9,363.60

$109,779.45

1996

15.3

 

$62,700.00

$  9,593.10

$119,372.55

1997

15.3

 

$65,400.00

$10,006.20

$129,378.75

1998

15.3

 

$68,400.00

$10,465.20

$139,384.95

1999

15.3

 

$72,600.00

$11,107.80

$150,492.75

2000

15.3

 

$76,200.00

$11,658.60

$162,151.35

2001

15.3

 

$80,400.00

$12,301.20

$174,452.55

NOTE: Where SEI is reported on a fiscal year basis, the maximum SEI taxable is the maximum for the year in which the fiscal year begins.

*The law provides credit against SE tax liability for the following years equal to:

1984 - 2.7% of SE income (total effective rate 11.3%)

1985 - 2.3% of SE income (total effective rate 11.8%)

1986 - 2.0% of SE income (total effective rate 12.3%)

1987 - 2.0% of SE income (total effective rate 12.3%)

1988 - 2.0% of SE income (total effective rate 13.02%)

1989 - 2.0% of SE income (total effective rate 13.02%)

NOTE: Effective with tax year 1990 the SECA tax rate is 15.3% (no credit applies but half of the self-employment tax is allowed to be taken as an income tax deduction). Further when computing NESE a 7.65% deduction is required. The purpose of this deduction is an attempt to achieve parity between an employee who's employer pays 7.65% of the FICA tax on his/her behalf and the self-employed person who is responsible for payment of their own SECA taxes.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0301801100
RS 01801.100 - Maximum Self-Employment Income and Cumulative Social Security Taxes Paid on SEI - 05/21/2003
Batch run: 01/27/2009
Rev:05/21/2003