Date of Issue 4/97

Subject: Social Security

The university and employee each pay equal amounts toward FICA tax (Federal Insurance Contributions Act) as established by the Social Security Administration.

Two separate payroll taxes are withheld from wages. These are subject to annual revision. The current tax is:

Social Security Tax rate of 6.2% with a cap on earnings as designated by the Social Security Administration

Medicare Tax rate of 1.45%

This tax provides retirement, disability and death benefits to qualified participants.

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