Vol. 16, No. 2
January 7, 1999
Social Security Wage Base Increases for 1999
As the designated liaison between the Social Security Administration
and employers with Social Security Section 218 Agreements, the Department
of Employe Trust Funds produces this Employer Bulletin
to provide updated information including Social Security and Medicare
wage bases for 1999. The following applies to all Wisconsin Retirement
System employers and all other public employers subject to a Social
Security Section 218 agreement.
- Social Security and Medicare Wage Bases and Rates for
Effective for all wages paid on or after January 1, 1999, the
Social Security (full FICA) wage base will increase from $68,400
to $72,600. The Medicare wage base will not have a dollar limit
Although the wage base will increase, the employer and employe
tax rates will remain the same in 1999. The Social Security
(full FICA) rate remains at 7.65% (6.20% Social Security plus
1.45% Medicare) for wages up to $72,600. All wages over $72,600
are subject only to the 1.45% Medicare rate. The rate remains
at 1.45% for others who are subject only to Medicare.
- Earnings Exemptions for 1999
The maximum amount a Social Security beneficiary may earn without
any reduction in benefits will increase to $9,600 for those
under age 65 and $15,500 for those ages 65 through 69. Social
Security beneficiaries over age 70 do not have a maximum earnings
- 1999 Earnings Requirement for One-Quarter Credit
for Social Security
In 1999, the amount of earnings required for a Social Security
credit (a quarter of coverage) will increase from $700 to $740
($1,480 will earn two quarters, etc.).
- 1999 Benefit Increase for Social Security
The Social Security benefit increase for 1999 will be 1.3%.
- Election Worker Exclusion for 1999
The exclusion remains at $1,000 per year through 1999 at which
time wage indexing will start.
For questions about this Bulletin contact: Dale Ferron,
Division of Employer Services, Department of Employe Trust Funds
at (608) 266-0728.