Social Security Agreement with Mexico
A new agreement between the U.S. and Mexico will remove the burden of US citizens working for U.S. companies in Mexico having to pay social security taxes to both countries, and vice versa. When the agreement takes effect, U.S. and Mexican employers and their employees will contribute to either the U.S. or Mexican social security systems, but not both. This will result in approximately 3,000 U.S. workers and their employers sharing in tax savings of $140 million over the first five years of the agreement.

The agreement must be reviewed by the U.S. Congress and approved by the Mexican Senate before it can take effect.

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...back to 1 July 2004


Further information:
www.ssa.gov/pressoffice/pr/USandMexico-pr.htm

Social Security Agreement
An agreement has been signed between the United States and Japan that will remove from U.S. citizens working for U.S. companies in Japan the burden of paying social security taxes to both countries. When the agreement takes effect, U.S. and Japanese employers and their employees will contribute to either the U.S. or Japanese social security systems, but not both. This will result in approximately 15,600 U.S. workers and their employers sharing in tax savings of $632 million over the first five years of the agreement. The agreement must be reviewed by Congress and approved by the Japanese Diet before it can take effect.

Further information:
www.ssa.gov/pressoffice/pr/US-Japan-pr.htm
...back to 25 March 2004

Social security numbers
For purposes of privacy, all checks issued by the US Department of Treasury to individuals for social security, supplemental security income or any other payments will no longer show social security numbers.

Further information:
www.socialsecurity.gov/enews/last.htm#checks
...back to 25 December 2003

Social Security tax rates for 2004
The tax rate for employees continues at 7.65% for the year starting January 2004. The Social Security (OASDI) portion is 6.2% of earnings up to the applicable maximum, and the Medicare portion is 1.45% of all earnings. The maximum earnings figure for the Social Security (OASDI) portion is $87,900, up from the 2003 maximum of $87,000, reflecting the rise in average wages.

Further information:
www.socialsecurity.gov/pressoffice/factsheets/colafacts2004-alt.htm
www.ssa.gov/pressoffice/pr/2004cola-pr.htm
...back to 31 October 2003