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Show Tax rate stays the same Although the Social Security tax rate for employees and employers 7 Z7T from a7 1,1 7 for 15)84, the effec-tive tax rate for emp oyees will reamin at the 198. J lcvv, a Social Security spokesperson said recently. This is because employees have been given a one-time 0.3 percent credit against the 198-1 tax rate, the representative said. As a result, employees whose earnings are the same in 1984 as they were in 1983 will see no increase in the amount of Social Security taxes withheld from wanes. In 1 984, Social Security taxes will be paid on annual earnings up to $37,8(X), the maximum that counts for Social Security. The 1983 maximum was $35,700. The 1984 Social Security tax rate for self-employed people will be 14 percent, double the rate paid by employees. Hut, self-employed people will receive a credit of 2.7 percent of self-employment income, ' resulting in an effective tax rate of 11.3 percent. The 1983 self-employment self-employment tax rate was 9.35 percent. |
