 |
Social Security Contribution and Rate Schedule(percent of covered earnings)| Year | Retirement
survivors,
and
disability
insurance | Hospital
insurance (%) | Total |
|---|
| Employers and Employees | | 1978 | 4.95% | 1.10% | 6.05% | | 1979–80 | 5.08 | 1.05 | 6.13 | | 1981 | 5.35 | 1.30 | 6.65 | | 1982–83 | 5.40 | 1.30 | 6.70 | | 1984 | 5.70 | 1.30 | 7.00 | | 1985 | 5.70 | 1.35 | 7.05 | | 1986–87 | 5.70 | 1.45 | 7.15 | | 1988–89 | 6.06 | 1.45 | 7.51 | | 1990 & later | 6.20 | 1.45 | 7.65 | | Self-employed | | 1978 | 7.00% | 1.10% | 8.10% | | 1979–80 | 7.05 | 1.05 | 8.10 | | 1981 | 8.00 | 1.30 | 9.30 | | 1982 | 8.05 | 1.30 | 9.35 | | 1983 | 8.05 | 1.30 | 9.35 | | 1984 | 11.40 | 2.60 | *14.00 | | 1985 | 11.40 | 2.70 | *14.10 | | 1986–87 | 11.40 | 2.90 | *14.30 | | 1988–89 | 12.12 | 2.90 | *15.02 | | 1990 & later | 12.40 | 2.90 | *15.30 |
* The law provides credit against self-employment tax liability in the following manner: 2.7% in 1984; 2.3% in 1985; 2.09% 1986–1989 and, beginning with the 1990 taxable year, the credit is replaced with two special provisions. First, self-employed persons will be allowed a 7.65% deduction from net profit before computing their SECA tax and second, an income tax deduction equal to one-half of the SECA tax.
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