Q. What are the tax rates and the Social Security wage base limit?

These taxes have different tax rates, and only the social security tax has a wage base limit. The wage base limit is the maximum wage that is subject to the tax for the year.

For 2008, the employee tax rate is 6.2%, the wage base is $102,000, and the employee tax rate is 6.2%.  The Medicare tax rate is 1.45% on all earnings

For 2007, the wage base was $97,500 and the employee tax rate was 6.2%. There is no wage base limit for Medicare tax. All covered wages are subject to Medicare tax at 1.45%. (Taken from IRS Publication 15, Circular E page 16).

Q. What are the different retirement rates?

Employee:
6% for TSERS, LAW, and ORP retirement systems

Employer:
TSERS (Teachers and State Employees Retirement System  and  Law ) 7.83% of gross wages from period January 2008-June 30, 2008. As of July 1, 2008, the new contribution rate is 8.14%.

Law –Same as TSERS  plus 5% for supplemental retirement

ORP Retirement - (TIAA, VALIC, Lincoln, Fidelity)  6.84% of gross wages

ORP Health/Disability (additional benefit that accompanies the ORP retirement benefit) 4.62% of gross wages

Q. What is the current minimum wage?

Current minimum wage is $6.15.  As of July 24, 2008 minimum wage will increase to $6.55