lectur3-page27

lectur3-page27 - increased each year. In 1974, $13,200 for...

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The maximum earnings taxed in 1971 was $7,800, and the tax rate was 4.05%. Maximum tax paid and employer contribution made was $631.80 that year. In 1972 the tax rate remained the same at 4.05%, but the maximum earnings taxed remained increased to $9,000. In 1972 the maximum employee tax paid and employer contribution totaled $729.00. In 1973, the tax rate was 4.3% and the maximum earnings taxed remained $10,800. This provided a total of $928.80 credited to an employee’s account. From 1974 to 1977, the tax rate was held steady at 4.375% but the maximum earnings taxed
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Unformatted text preview: increased each year. In 1974, $13,200 for a total of $1,155.00 credited the year. In 1975, $14,100 for a total $1,233.75 credited for the year. In 1976, $15,300 for a total of $1,338.75 credited for the year. In 1977, $16,500 for a total of $1,443.75 for the year. In 1978, the OASI tax rate was lowered to 4.275% with a maximum earnings taxed of $17,700 for a total of $1,513.35 credited for the year. In 1979, the maximum earnings taxed climbed to $22,900 with an increase in the retirement tax rate to 4.33%. Employee and employer contributions totaled $1983.14. 27...
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