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.
- Social Security and Medicare Wage Bases and Rates for
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
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.
- 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.
- 2000 Earnings Requirement for One-Quarter Credit for
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.).
- 2000 Benefit Increase for Social Security
The Social Security benefit increase for 2000 will be 2.4 percent.
- 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.
Social Security Coverage under Wisconsin's Section 218 Agreement
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
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)