ARIZONA STATE UNIVERSITY
VOLUNTARY SEPARATION AND RETIREMENT INCENTIVE PROGRAM

Annual Social Security Taxable Wage Limit

The annual social security taxable wage limit is the threshold that determines whether or not social security taxes must be withheld from an employee’s check and matched by the employer.  Any amount under the limit has social security taxes withheld and matched by the employer.  Any wages paid over the limit during a calendar year are not subject to social security tax withholding or an employer match. 

• 2003 Social Security Taxable Wage Limit - $87,000
• 2004 Social Security Taxable Wage Limit - $87,900
• 2005 Social Security Taxable Wage Limit – will be announced fall of 2004

Currently the social security tax is rate 6.2% of wages to the annual wage limit.  All wages are subject to Medicare taxes and that amount is currently 1.45%.