In addition to the 2.7% increase that has been announced in the Cost-of-Living Adjustment (COLA) to Social Security and Supplemental Security Income benefits from January 2005, there are also changes to Social Security Taxes.

From January 2005, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to from $87,900 to $90,000. The amount of earnings needed to earn one quarter of coverage will also increase from $900 to $920. There will be no changes to the combined rate for Social Security and Medicare, which will remain at 7.65%.

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...back to 28 October 2004

Sources:
www.ssa.gov/pressoffice/pr/2005cola-pr.htm
www.ssa.gov/pressoffice/factsheets/colafacts2005.htm