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Employers

Employer Bulletin

All Employers
Vol. 16, No. 20
December 22, 1999

Social Security Wage Base Set to Increase for 2000

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 2000. The following applies to all Wisconsin Retirement System employers and all other public employers subject to a Social Security Section 218 agreement.

  1. Social Security and Medicare Wage Bases and Rates for 2000

    Effective for all wages paid on or after January 1, 2000, the Social Security (full FICA) wage base will increase from $72,600 to $76,200. The Medicare wage base will not have a dollar limit for 2000.

    Although the wage base will increase, the employer and employe tax rates will remain the same in 2000. The Social Security (full FICA) rate remains at 7.65% (6.20% Social Security plus 1.45% Medicare) for wages up to $76,200. All wages over $76,200 are subject only to the 1.45% Medicare rate. The rate remains at 1.45% for others who are subject only to Medicare.

  2. Earnings Exemptions for 2000

    The maximum amount a Social Security beneficiary may earn without any reduction in benefits will increase to $10,080 for those under age 65 and $17,000 for those ages 65 through 69. Social Security beneficiaries over age 70 do not have a maximum earnings amount.

  3. 2000 Earnings Requirement for One-Quarter Credit for Social Security

    In 2000, the amount of earnings required for a Social Security credit (one quarter of coverage) will increase from $740 to $780 ($1,560 will earn two quarters, etc.).

  4. 2000 Benefit Increase for Social Security

    The Social Security benefit increase for 2000 will be 2.4 percent.

  5. Election Worker Exclusion for 2000

    The exclusion will now rise to $1,100 for year 2000.

Questions about the above can be directed to Dale Ferron, Department of Employe Trust Funds, at (608) 266-0728.

IMPORTANT NOTICE

Social Security Coverage under Wisconsin's Section 218 Agreement

The Department of Employe Trust Funds (ETF) has received numerous calls from employers who have received conflicting information from private sources as to which employes must be covered by Social Security. Other than services excluded by federal law, the only exclusion from coverage under the Wisconsin Section 218 Agreement is for:

"Services performed by a student or member of a board or commission, except members of governing bodies, in a position or office which does not normally require actual performance of duty for at least 600 hours in each year."

THERE IS NO EXCLUSION FOR TEMPORARY OR PART-TIME EMPLOYES WORKING FOR EMPLOYERS COVERED UNDER WISCONSIN'S SECTION 218 AGREEMENT.

If you receive this bulletin, your employer is covered under Wisconsin's Section 218 Agreement. ETF is developing an Employer Bulletin that will detail covered employes under Social Security. This Employer Bulletin is forthcoming.

In the meantime, please address any questions regarding Social Security coverage to Dale Ferron at (608) 266-0728 or to Jean Gilding at (608) 266-1210.

 

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