Internal Revenue Service (IRS) regulations call for two FICA taxable wage bases, for a combined 200l tax rate of deduction equal to 7.65%.

The old age, survivors' and disability insurance (OASDI) portion equals 6.2%, with a $80,400 earnings ceiling.

The hospital insurance (HI) portion equals 1.45% and does not have an earnings ceiling.

Social security (FICA) taxes must be deducted from any individual whose gross earnings, including taxable Employee Business Expenses (EBE), are $100 or more within a calendar year. When an individual's gross earnings reach $100 or more during a calendar year. FICA must be deducted based on the total gross earnings.

IRS regulations must be followed concerning the advance depositing of income and social security taxes withheld, including the Local's share of FICA, taxes.

Circular E, Employer's Tax Guide, published by the IRS contains instructions on how to apply these regulations. It is emphasized that deviations from Circular E requirements will result in serious penalties being levied against the Local Union.

Stephen P Yokich

International President