Historical April 1990 report or notice. Original dates, prices and contacts describe the source period; current availability has not been established.
Social Security taxes will be taking a 7.65 percent bite out of employees’ paychecks in 1990, up from the 1989 rate of 7.51 percent, according to the Social Security Administration. Also, employers will pay a 7.65 percent for their employees in 1990.
The maximum amount of earnings subject to Social Security taxes will be $51,300 this year, an increase from 1989’s $48,000 earnings cap. Self-employed people pay both the employer and the employee shares of the tax for a 15.3 percent bill.
However, a change in the Federal tax laws for 1990 allows the self-employed to claim a business deduction on one-half of the self-employment taxes paid.
Most of the taxes Social Security will receive this year will be used to pay for current benefits.
The remainder will be invested in Treasury bills at prevailing interest rates to fund future Social Security benefits. About 1 percent will go for administrative expenses. Questions about the self-employment tax deduction should be directed to the toll-free Internal Revenue Service phone number, 1-800-424-1040. Social Security questions can be answered by calling Social Security.
Originally published in The Times of Skinker-DeBaliviere, April 1990.
Read this article in the original newspaper issue.
Original source: SD_Times1990_04.pdf, printed page(s) 7; PDF page(s) 7.
