Based on the increase in the Consumer
Price Index (CPI-W) from the third quarter of 1999
through the third quarter of 2000, Social Security
beneficiaries and Supplemental Security Income (SSI)
recipients will receive a 3.5 percent COLA for 2001.
Other important 2001 Social Security information is as
follows:
Tax Rate:
2000
2001
Employee
7.65%
7.65%
Self-Employed
15.30%
15.30%
NOTE: The 7.65% tax rate is the combined
rate for Social Security and Medicare. The Social
Security portion (OASDI) is 6.20% on earnings up to the
applicable maximum taxable amount (see below). The
Medicare portion (HI) is 1.45% on all earnings.
Maximum Earnings Taxable:
2000
2001
Social Security (OASDI only)
$76,200
$80,400
Medicare (HI only)
N o L i m i t
2000
2001
Quarter of Coverage:
$780
$830
Retirement Earnings Test Exempt
Amounts:
As of January 2000, the Retirement
Earnings Test has been eliminated for individuals age
65-69. It remains in effect for those ages 62 through 64.
A modified test applies for the year an individual
reaches age 65. (The Senior Citizens’ Freedom To
Work Act of 2000, signed into law by President Clinton on
April 7, 2000.)
2000
2001
Year individual reaches 65
$17,000/yr.
($1,417/mo.)
$25,000/yr.
($2,084/mo.)
NOTE: Applies only to earnings for months
prior to attaining age 65. One dollar in benefits will be
withheld for every $3 in earnings above the limit. There
is no limit on earnings beginning the month an individual
attains age 65.
Under age 65
$10,080/yr.
($840/mo.)
$10,680/yr.
($890/mo.)
NOTE: One dollar in benefits will be
withheld for every $2 in earnings above the limit.
Maximum Social Security Benefit:
Worker Retiring at Age 65 in January of 2000 and 2001
$1,433/mo.
$1,536/mo.
SSI Federal Payment Standard:
2000
2001
Individual
$512/mo.
$530/mo.
Couple
$769/mo.
$796/mo.
SSI Resources Limits:
2000
2001
Individual
$2,000
$2,000
Couple
$3,000
$3,000
Estimated Average Monthly
Social Security Benefits:
