Wage, Tax Rate and Benefit Information

The Kentucky Division of Local Government Services
State Social Security Administrator for Kentucky's Public Employers and Employees

PLEASE NOTE--This publication is for general information only. The material provided within should not be used or cited as authority for benefit or employment tax obligations and requirements. The Internal Revenue Code, the Social Security Act and the Kentucky Revised Statutes, along with regulations, revenue rulings and case law, are the only valid citations of authority.

Social Security Tax Information	1999	2000	2001	2002	2003	2004	2005	2006
Employee & Employer rate	6.20/%	6.20%	6.20%	6.20%	6.20%	6.20%	6.20%	6.20%
Maximum wages	$72,600	$76,200	$80,400	$84,900	$87,000	$87,900	$90,000	------
a) Projected Maximum	------	-------	-------	-------	-------	-------	-------

a) The maximum wages subject to social security for the next calendar year are calculated and announced by the Social Security Administration each fall.

Medicare Tax Information (b)	1999	2000	2001	2002	2003	2004	2005	2006
Employee & Employer rate	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%

b) Public Law 103-82 repealed the medicare wage base, effective January 1, 1994. All wages, subject to the medicare tax, are taxable.

Social Security Benefit Information	1999	2000	2001	2002	2003	2004	2005
Earnings required for one quarter coverage	$740	$780	$830	$870	$890	$900	$920
Avg. monthly SS benefit for individuals	$785	$816	$852	$882	$895	$930	$955
Avg. monthly SS benefit for couples	$1,316	$1,363	$1,418	$1,463	$1,483	$1,532	$1,574
Annual increase in benefits	1.30%	2.40%	3.50%	2.60%	1.40%	2.10%	2.70%

--Social security benefit information for the next calendar year is calculated and announced by the Social Security Administration each fall.

Exempt amounts under retirement earnings test	1999	2000	2001	2002	2003	2004	2005
c) Under full retirement age	$9,600	$10,080	$10,680	$11,280	$11,520	$11,640	$12,000
Age 65-69 for years prior to 2000	$15,500	-------	-------	-------	-------	-------	-------
d) Months prior to full retirement age attainment		$17,000	$25,000	$30,000	$30,720	$31,080	$31,800
e) Months after full retirement age is attained		No limit	No limit	No limit	No limit	No limit	No limit

--As of January 2000, the retirement earnings test has been eliminated for individuals age 65-69. It remains in effect for those beneficiaries ages 62 to full retirement age. A modified test applies for the year an individual reaches full retirement age.
--However, employers should withhold social security and/or medicare from wages paid those employees performing service in covered employment, no matter the employee's age or social security beneficiary status.
c) One dollar in benefits will be withheld for every $2 in earnings above the limit.
d) Applies only for those months, in the calendar year an individual reaches full retirement age, prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
e) There is no limit on earnings beginning the month an individual attains full retirement age.

Click here for information on full retirement age for social security benefits.

Other Employer Information	1999	2000	2001	2002	2003	2004	2005
Employer provided vehicle: Government control employee wage amount that limits use of commute valuation method	$110,700	$114,500	$117,600	$121,600	$125,400	$127,300	N/A
IRS standard mileage rate	32.5¢/31¢	32.5¢	34.5¢	36.5¢	36¢	37.5¢	N/A
Employer provided vehicle: Maximum car value where cents per mile valuation may be used	$15,500	15,400	$15,400	$15,300	$15,200	$14,800	N/A
Relocation/Medical mileage rate	10¢	10¢	12¢	13¢	12¢	14¢	N/A
Expiration of statute of limitations	4/15/2003	4/15/2004	4/15/2005	4/15/2006	4/15/2007	4/15/2008	4/15/2009
f) Election worker exclusion	$1,000/yr	$1,100/yr	$1,100/yr	$1,200/yr	$1,200/yr	$1,200/yr	$1,200/yr

f) The election worker exclusion will be adjusted each year, after 1999, to reflect wage changes in the economy. SSA will announce the new threshold amount each fall.

For questions on social security coverage for a Kentucky governmental employer - Send an E-mail to the KY Social Security Administrator

Division of Local Government Services
Social Security Coverage and Reporting Branch
200 Fair Oaks Lane, Third Floor-Station 11
Frankfort KY 4060
Phone: 502/564-3952
Fax: 502/564-2124

For questions on social security benefits or social security cards - Send an E-mail to the
Federal Social Security Administration

Social Security Administration (SSA)
1-800/772-1213

Click here for a list of SSA offices in Kentucky